Shares of JSW Steel declined over 4 per cent in Mondays early trade after the companys consolidated net profit declined 87 per cent year-on-year to Rs 211 crore for the quarter ended December 31.The scrip traded 4.28 per cent down at Rs 260.30 at around 10 am, while the benchmark BSE Sensex traded 0.50 per cent lower at 41,410.Emkay Global Financial Services said, JSW reported in-line but a weak set of results, driven by the correction in steel prices in October, partially offset by the rally in prices in November/December and domestic sales spurt in Dec.
However, ASP remained lower on a QoQ basis due to the steep fall in steel prices in October.
The brokerage house maintained Sell rating on the stock.The company recorded a total income of Rs 18,182 crore during the period under review, lower by 10.67 per cent from Rs 20,355 crore earned during the corresponding quarter of the last financial year.In a regulatory filing, the company said that its crude steel production during the October-December quarter stood at 40.2 lakh tonne, 5 per cent higher on a quarter-on-quarter basis.
However, on a year-on-year basis, the production was lower by 5 per cent, due to extended monsoon which impacted operations at Dolvi and Vijayanagar, it said.The companys consolidated net gearing (net debt to equity) stood at 1.35 times at the end of the quarter against 1.36 times at the end of September quarter.
Net debt to EBITDA stood at 3.71 times as against 3.23 times at the end of Q2FY20.