Shares of JSW Steel fell more than 3% on Friday afternoon after the company reported an 85% drop in net profit for the quarter ended September 2024. The profit decline was larger than expected in due to the decline in imports of cheap finished steel. domestic prices at their lowest level in several years in a context of moderate demand. The company said it declared a provision of Rs 342 crore due to the proposed divestment of Jajang iron ore mine due to an exceptional item.

Nte’s profit slipped to Rs 404 crore in the last quarter from Rs 2,773 crore in the September 2023 quarter.

Revenue fell 11% to Rs 39,684 crore in the second quarter from Rs 44,584 crore in the second quarter of the previous fiscal. Operating EBITDA slipped to Rs 5,437 crore in the second quarter from Rs 7,886 crore in the corresponding period.

EBITDA margin in the latest quarter stood at 13.7 per cent compared to 17.7 per cent in the corresponding quarter last year and 12.8 per cent in the April-June quarter this year.

Consolidated crude steel production climbed 7% year-on-year and quarter-on-quarter to 6.77 million tonnes on the back of improved production at Dolvi and BPSL; capacity utilization of 91% in Indian operations.

However, total sales volumes decreased by 3% year-on-year to 6.13 million tonnes, but remained stable quarter-on-quarter, mainly due to lower exports.

The stock slipped 3% intraday to Rs 927.20 after the second quarter results. The company’s market capitalization fell to Rs 2.30 lakh crore. Later, the stock closed 1.56% lower at Rs 943.15 on BSE.