JSW Steel on Friday reported a net loss of Rs 561 crore for the quarter ended June 30. It had posted a net profit of Rs 1,028 crore in the corresponding quarter last year. Consolidated total income of the company declined 40.29 per cent year-on-year (YoY) to Rs 11,914 crore during the quarter under review.
JSW has reported a loss for the first time in more than six years after the lockdown to contain the coronavirus pandemic stalled operations during most of the first quarter before the nation started to ease curbs.
The company said the group’s operations were impacted during the Covid-19 hit quarter, due to scaling down or suspending production across all plants due to supply chain constraints and shortage of workforce. It further added that the company has commenced operations and the average capacity utilisation in the month of May and June have reached 80 per cent.
JSW Steel’s output fell 30% year-on-year to 2.96 million tonnes in the three months ended June, it had said in a separate filing earlier this month. In comparison, SAIL’s production fell 41%, while smaller peer Jindal Steel & Power Ltd.’s rose 9.7%.
“Lower costs of iron ore and other operating expenses partially offset the drag on margins caused by weaker operating leverage and lower realisations,” JSW Steel said in a regulatory filing. The steelmaker is hoping to put its dreadful quarter behind and focus in the forward direction.