JSW Steel Q1 Results: Lower expenses contribute to margin, profit expansion

JSW Steel Ltd. announced its June quarter results just before the close of trade on Friday, June 18, where lower expenses contributed to better operating performance of the company.

Net profit for the period stood at ₹2,184 crore from ₹845 crore during the same quarter last year.

This was aided by a 3.3% or over ₹1,400 crore drop in the company's total expenses compared to last year. Total expenses for the quarter stood at ₹40,325 crore from ₹41,715 crore last year.

Lower expenses also contributed to JSW Steel's improved operating performance. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹7,576 crore, which is a 37.5% growth from the same quarter last year, while margins expanded by nearly 500 basis points to 17.56% from 12.83% last year.

Revenue for the quarter remained flat, showing a modest 0.5% increase to ₹43,147 crore.

The company's net debt at the end of the June quarter stood at ₹79,850 crore, which is higher by ₹3,287 crore compared to the March quarter, largely due to investment in working capital. Net debt-to-EBITDA at the end of the quarter stood at 3.2x, compared to 3.34x at the end of March.

Shares of JSW Steel saw a spike towards the close of trade as the results were announced, eventually ending 1% higher at ₹1,044.8. The stock has closed near its 52-week high of ₹1,074.9.