JSW Steel has posted consolidated net profit at Rs 62.4 crore in January-March quarter, a big slip of 87 percent from Rs 482.8 crore in the corresponding quarter last fiscal. Total income in Q4 also fell 12.2 percent to Rs 12600 crore versus Rs 14,342.4 crore year-on-year (YoY).
This is much lower than street estimates. According to a CNBC-TV18 poll, it was expected to report net profit of Rs 124 crore in the March quarter ended 2015 and total income was seen falling 12.2 percent at Rs 12590 crore.
During the period, its operating profit declined 33.5 percent at Rs 1682.6 crore versus Rs 2528.7 crore (Y-o-Y). Operating profit margins (OPM) was at 13.4 percent versus 17.6 percent on yearly basis. Profit before tax loss stood at Rs 112 crore versus gain at Rs 483 crore (Y-o-Y).
The management says Q4 margins missed guidance but steel consumption is likely to grow marginally going ahead. During the quarter, the company reported crude steel production as well as saleable steel sales volume of 3.06 million tonnes.
Gross turnover and net sales for FY2015 stood at Rs 56,572 crore and Rs 52,051 crore, respectively on Y-o-Y basis.
“The company was able to partly offset the headwind of intensifying price competition from surging imports with product mix enrichment. Ramp up of new downstream facilities led to the share of value added products in overall volumes improving to 33 percent during the year,” it said in a statement.
The company has recommended a dividend of Rs 1 per share on 27,90,34,907, 10 percent Cumulative Redeemable Preference Shares (CRPS) of Rs 10 each, for the year ended March 31, 2015.
The stock ended at Rs 875.45, down Rs 29.65, or 3.28 percent on the BSE.
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