JSW Steel on Friday posted a sharp 85.50 per cent fall in its December quarter consolidated net profit to Rs 474 crore mainly on account of higher expenses.
The firm had clocked a net profit of Rs 4,516 crore in the year-ago period, it said in a regulatory filing.
Total income during the October-December quarter of the ongoing fiscal rose to Rs 39,322 crore from Rs 38,225 crore a year ago.
Expenses were also higher at Rs 38,288 crore as against Rs 31,986 crore.
In a separate statement, JSW Steel said its consolidated crude steel production was at 6.14 million tonnes (MT) during the December quarter, while the company sold 5.63 MT finished steel in the third quarter.
The company's subsidiary JSW Steel Coated Products registered a production volume of 0.73 MT and sales volume of 0.84 MT. It has reported a loss of Rs 162 crore for the quarter.
Bhushan Power & Steel Ltd (BPSL) recorded 0.74 MT steel output and sales volume of 0.68 MT. The subsidiary also reported a loss of Rs 150 crore for the quarter ended December 31, 2022.
JSW Steel USA Ohio Inc produced 47,499 net tonnes of HRC (hot rolled coils) and 91,962 net tonnes of slabs during the quarter. The sales from the US arm stood at 43,936 net tonnes for HRC and 44,784 net tonnes for slabs. It reported an operating EBITDA loss of USD 22.8 million for the quarter.
JSW Steel (Italy) S.r.l. (Aferpi) facility produced 78,175 tonnes of steel and sold 89,075 tonnes during the quarter. It reported an operating EBITDA of 7.8 million euro for the quarter.
Further, the company said its 5 MTPA brownfield expansion at Vijayanagar is progressing well. The project is expected to be completed by the end of FY24. The phase-II expansion of BPSL to 5 MTPA also remains on track for completion by FY24.
"The company's capex (capital expenditure) spend was Rs 4,114 crore during Q3 FY23, and Rs 10,707 crore for 9 months (April-December) FY23, against the revised planned capex spend of Rs 15,000 crore for FY23," it said
The global economic outlook remains uncertain on the back of policy tightening by central banks as well as the impact from the ongoing conflict in Ukraine. While supply chains have improved and inflation across major global economies is cooling off, there is a risk of a mild recession during 2023 in the developed markets.
In India, the fundamental growth drivers remain robust, with strong Manufacturing and Services PMI indicators and positive high frequency indicators.
The domestic steel industry witnessed demand growth with consumption at 29.86 million tonnes in the third quarter of FY23, up by 10.5 per cent year-on-year (y-o-y), supported by a better demand from the infrastructure sector.
Part of the O P Jindal Group, JSW group has a presence in sectors such as steel, energy, infrastructure, cement and sports.