InvestorQ : Why did the profits at JSW Steel fall so sharply in the Mar-20 quarter?
Rashi Mehra made post

Why did the profits at JSW Steel fall so sharply in the Mar-20 quarter?

Answer
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sarah Leo answered.
5 months ago


There was not much of a surprise in the JSW numbers as the net profits of JSW Steel fell by 86% to Rs.242 crore for the Mar-20 quarter. This compares with Rs.1727 crore net profits in the Mar-19 quarter. Analysts had estimated net profits at Rs.733 crore. Revenues for the Mar-20 quarter also was nearly 25% lower at Rs.15,020 crore. During the quarter, JSW Steel made an impairment provision of Rs.1309 crore which included Rs.852 crore towards diminution in value of investment iron ore mines in Chile and Rs.377 crore for shortfall in interest recovery. Overall revenues took a hit on the back of lower volumes and weaker realisations. The good news was that EBITDA margins were still steady at 21.2%.