JSW Steel Quarter 2 Results

JSW Steel reported its result for the second quarter of the financial year 2020 on 23rd October. It reported a 21.5% increase in net profit at Rs 2536 crores from Rs 2,087 crore during the same quarter last year.

Revenue from operations fell by 18.4% to Rs 17,572 crore from Rs 21,552 crore last year majorly because of a sharp decline in automobile steel sales owing to weak underlying automobile demand, lower steel prices and increased focus of Indian steelmakers on the export market.

A major reason for the increase in net profit is the reversal of deferred tax liability amounting to Rs 2,207 crores relating to the temporary differences that would reverse post-migration to the new tax rate.

Its operating EBITDA reduced by 44.3% to Rs 2,731 crore as against Rs 4,906 last year and other income increased three times to Rs 156 crore, as compared to Rs 56 crore the previous year.

The financial cost increased by 8.15% to Rs 1,127 crore, as against Rs 1042 crore the previous year.

Its net debt increased to Rs 49,640 crore as compared to Rs 47,767 crore during the June quarter.

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Analyst: Ankush Jain