Moneycontrol Bureau
JSW Steel has posted a consolidated net loss of Rs 923 crore for October-December quarter (against profit of Rs 329 crore in year-ago period) on impairment charges. Lower revenue and weak operational performance also impacted bottomline.
"JSW recorded impairment charges of Rs 2,121 crore towards its US operations of plate & pipe mill and coal mines. It included charges of Rs 1,045 crore for iron ore mines operation in Chile," the company said in its filing.
Revenue fell 34.2 percent to Rs 8,698 crore in quarter ended December 2015 compared to Rs 13,223 crore in year-ago period, majorly hit by steel business that dropped 33 percent and posted EBIT (earnings before interest & tax) of Rs 230.6 crore for the quarter against profit of Rs 1,015 crore on yearly basis.
Consolidated operating profit (earnings before interest, tax, depreciation and amortisation) in Q3 plunged 61 percent to Rs 892 crore and margin contracted by 710 basis points to 10.3 percent compared to corresponding period of last year.
JSW Steel said the global steel industry has been going through tough times and December production across the world was down by 5 percent, adding domestic steel demand was down by 39 million tonnes.
The company further said it will produce 5-6 percent lower than initial guidance of 13.4 million tonnes in FY16 and will reach 18 million tonne per annum capacity in March instead of January. According to the firm, there could be some upward revision in steel prices in Q4.
The scrip of JSW Steel was quoting at Rs 1,058.50, down Rs 34.65, or 3.17 percent ahead of earnings that announced after market hours.
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