India's leading steel producer, JSW Steel (JSTL.NS), reported a significant 65% decline in net profit for the fourth quarter of fiscal year 2023-24, primarily due to softening steel prices and increased costs. The company's consolidated net profit dropped to 12.99 billion rupees ($155.9 million) for the three months ending March 31, marking the first quarterly profit decline for JSW Steel following three consecutive quarters of growth.
Domestic steel prices experienced a contraction during the quarter, with weak demand in China contributing to the downward trend. Simultaneously, the costs of essential raw materials for steel production, such as iron ore and coking coal, escalated during the quarter. These rising expenses further strained JSW Steel's profitability.
Total revenue from operations decreased by 1.5% to 462.69 billion rupees, while expenses surged by 2.9%. The increase in expenses was primarily driven by a rise in input costs. Despite the disappointing financial results, shares of JSW Steel closed 1.7% higher on the BSE ahead of the earnings announcement
