JSW Steel Q4 Results: Net Profit Slumps 65% YoY; Board Recommends Final Dividend Of Rs 7.30/Share

JSW Steel, a prominent player in the steel industry, announced a 64.66% year-on-year (YoY) decline in net profit, amounting to Rs 1,322 crore for the fourth quarter ending March 31, 2024. A net profit of Rs 3,664 crore was recorded in the corresponding period last year.

Although the company's revenues for the quarter remained relatively stable at Rs 46,269 crore, almost on par with the previous year's Rs 46,962 crore, expenses surged to Rs 44,401 crore, up from Rs 43,170 crore a year ago, as per regulatory filings on May 17.

JSW Steel witnessed a 22.9% decline in earnings before interest, tax, depreciation, and amortisation (EBITDA), with figures dropping to Rs 6,124 crore in Q4 of the fiscal year 2023-24, compared to Rs 7,939 crore in the same period of the previous fiscal year. This downturn in EBITDA translated to a reduction in EBITDA margin, from 16.91% to 13.2%.

The decline was further compounded by an 18% dip in other income, which amounted to Rs 451 crore in the quarter. Expenses linked to changes in inventories of finished and semi-finished goods, work in progress, and stock in trade notably increased to Rs 534 crore, marking a staggering rise of over 200% from Rs 165 crore.

JSW Steel announced efforts to leverage export opportunities, with exports reaching 1.32 million tonnes, marking a significant increase quarter-on-quarter (QoQ). This surge in exports, constituting 20% of sales from Indian operations, was attributed to the utilization of export avenues to liquidate inventories amidst rising global restocking demands.

The company emphasized its commitment to navigating challenges and capitalizing on emerging opportunities in the international market. Despite the Q4 setback, JSW Steel remains optimistic about its long-term prospects, leveraging its robust operational framework and strategic initiatives to fuel growth and resilience in the face of evolving market dynamics.

JSW Steel Ltd announced a 64% year-on-year (YoY) decline in standalone net profit for the March quarter, with figures plummeting to Rs 1,007 crore. Total revenue from operations also witnessed a decline, falling by 4.9% YoY to Rs 35,341 crore in the quarter.

Despite these setbacks, JSW Steel maintained strong production levels, with consolidated crude steel production standing at 6.79 million tonnes during the quarter.

In terms of expenditure, JSW Steel allocated consolidated capital expenditure (capex) of Rs 3,503 crores in Q4FY24, with a cumulative spending of Rs 16,752 crores in the fiscal year 2023-24.

Standalone steel sales for the quarter amounted to 5.69 million tonnes, representing a 9% quarter-on-quarter (QoQ) increase but remaining flat YoY. Domestic sales, however, witnessed a marginal decline, totalling 5.16 million tonnes, down by 2% QoQ and 5% YoY, largely attributed to heightened imports.

The board of directors of JSW Steel recommended a final dividend of Rs 7.30 (730%) per fully paid-up equity share of Rs 1 each for the fiscal year ended March 31, 2024. This proposed dividend is subject to approval by the members at the upcoming 30th annual general meeting (AGM) of the company.

The announcement of the financial results came after the close of market hours, impacting the trading sentiment. Shares of JSW Steel Ltd closed at ₹907.30 on the Bombay Stock Exchange (BSE), registering an increase of ₹20.95, or 2.36%.