Major Indian steelmaker JSW Steel (JSW) has announced its financial and operational results for the second quarter and the half year ended on September 30, 2019.
In the second quarter, JSW Steel achieved a net profit of INR 25.36 billion ($357.05 million), up 21.5 percent compared to the same quarter of the previous financial year. In the same period, JSW's net sales declined by 18.5 percent year on year to INR 175.72 billion ($2.46 billion).
For the half year ended on September 30, JSW Steel has posted a net profit of INR 35.44 billion ($499.1 million), down by 19.9 percent year on year, while its net sales decreased by 11.1 percent year on year to INR 373.84 billion ($5.26 billion).
The company has also decreased its planned capital expenditure for the financial year 2019-20 from INR 157.08 billion ($2.21 billion) to INR 110 billion ($1.55 billion), due to slackening demand.
During the second quarter, JSW produced 3.84 million mt of crude steel, down eight percent, while achieving finished steel sales of 3.6 million mt, decreasing by nine percent, both on year-on-year basis. The fall in results was driven by severe monsoon impacts, slack demand, decreases in steel prices, lower automotive sales and planned shutdowns. Meanwhile, in the half year ended on September 30, the company’s crude steel output amounted to 8.08 million mt, down three percent, while its finished steel sales decreased by six percent to 7.35 million mt, both year on year.