JSW Steel shares surged 3% on July 21 after the company posted strong quarterly results.
JSW Steel reported on 21 July that its consolidated net profit for the April-June quarter of 2024 stood at Rs 2,248 million, up 189 per cent from Rs 956 million for the same period last year. Operating revenue also increased by 11% year-on-year to Rs 4,177.1 billion on the back of increased sales volume.
JSW Steel’s profitability was better than Street expected. Operating profit margin rose to about 17% from analysts’ expectations of 12.5%. As of 12:51, the company’s shares were up 1.3% on BSE, trading at Rs 809.45. Consolidated crude steel output in the June quarter was 6.43 million tons, up 11% year-on-year, but down 2% from the previous quarter. Average capacity utilization in the first quarter of FY2024 decreased to 92% from 96% in the fourth quarter of FY23, reflecting the partial closure of India operations scheduled during the quarter.
Additionally, steel sales for the quarter were 5.71 million tonnes, up 27% year-on-year and down 13% quarter-on-quarter. Shipment delays from the cyclone that hit India’s west coast in late June hurt exports and declining inventories in the English Channel weighed on steel sales. JSW Steel is forecasting a production volume of 26.34 million tons and sales of 25 million tons in FY2024.
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