JSW Steel Ltd’s net profit drops 87% to Rs 188 cr for Q4FY20
New Delhi: JSW Steel Ltd’s consolidated net profit dropped by whopping 87 percent to Rs 188 crore for the fourth quarter of the 2019-20 fiscal as compared to Rs 1,495 crore in the same quarter of the previous fiscal.
The consolidated revenue from operations declined by about 20 percent to Rs 17,556 crore in the for the fourth quarter of the 2019-20 fiscal as compared to Rs 21,837 crore in the same quarter of the previous fiscal.
The gross revenue of the company for the fourth quarter of the 2019-20 fiscal dropped to Rs 15,020 crore from Rs 19,418 crore in the corresponding quarter f the previous fiscal.
JSW Steel Ltd made an impairment provision of Rs 1,309 crore resulting in sharp decline in profits. The impairment provision is inclusive of Rs 852 crore towards a diminution in value of investments and higher uncertainty in restarting one of the iron ore mines in Chile.
The impairment provision is also inclusive of Rs 377 crore shortfall in the interest recovery. It is also inclusive of Rs 80 crore towards retirement of some of the fixed assets in India.
There was easing in the costs of raw materials such as coal and iron ore which helped in offsetting some of the negative impact on the margins, the company said.
The EBIDTA of the company for the fourth quarter of the 2019-20 fiscal stood at Rs 3,330 crore. The Ebitda margin stood at 21.2 percent.
For the entire fiscal 2019-20, the consolidated net profit of the company dropped by about 45 percent to Rs 3,919 crore as compare to Rs 7,524 crore in the same period of the previous fiscal.
For the entire fiscal 2019-20, the consolidated revenue from operations of the company declined by around 14 percent to Rs 71,116 crore as compare to Rs 82,499 crore in the same period of the previous fiscal, the company said in a regulatory filing.