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Highlights
- Sales over the Year and quarter: The company experienced a substantial growth of 1.73 % in the past year, decrease in net sales/revenue by -7.19 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -48.82 %, Marginal increase in other income during this quarter, up by 5.56%.
- Profit over the Year and quarter: Challenges in sustaining profitability for JSW Steel Limited. Profit dropped by -64.29 % Year to Year, JSW Steel Limited’s profitability dropped by -34.42 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -64.30 % Year to Year. EPS decreased by -34.9 % in previous quarter. Analysis needed for shareholder value.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 42213 Cr | Rs. 46269 Cr | Rs. 42943 Cr | -7.19 % | + 1.73 % |
Expenses | Rs. 35167 Cr | Rs. 40145 Cr | Rs. 37433 Cr | -6.76 % | + 6.44 % |
Operating Profit | Rs. 7046 Cr | Rs. 6124 Cr | Rs. 5510 Cr | -10.03 % | -21.8 % |
OPM % | 16.69 % | 13.24 % | 12.83 % | -0.41 % | -3.86 % |
Other Income | Rs. 297 Cr | Rs. 144 Cr | Rs. 152 Cr | + 5.56 % | -48.82 % |
Interest | Rs. 1963 Cr | Rs. 2062 Cr | Rs. 2073 Cr | + 0.53 % | + 5.6 % |
Depreciation | Rs. 1900 Cr | Rs. 2194 Cr | Rs. 2209 Cr | + 0.68 % | + 16.26 % |
Profit before tax | Rs. 3480 Cr | Rs. 2012 Cr | Rs. 1380 Cr | -31.41 % | -60.34 % |
Tax % | 29.94 % | 32.7 % | 36.85 % | + 4.15 % | + 6.91 % |
Net Profit | Rs. 2428 Cr | Rs. 1322 Cr | Rs. 867 Cr | -34.42 % | -64.29 % |
EPS in Rs | Rs. 9.67 | Rs. 5.31 | Rs. 3.45 | -35.03 % | -64.32 % |
Today, we’re looking at JSW Steel Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 1.73 %. However, it did see a marginal slip of -7.19 % from the previous quarter. Expenses decreased slightly by -6.76 % quarter-on-quarter, aligning with the annual rise of 6.44 %. Operating profit, while down -21.8 % compared to last year, faced a quarter-on-quarter dip of -10.03 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -3.86 %, but a shrinkage of -0.41 % sequentially. Other income rose by 5.56 % compared to the last quarter, despite an annual decline of -48.82 %. Interest expenses surged remarkably by 0.53 % from the previous quarter, yet the year-over-year increase remains at a moderate 5.6 %. Depreciation costs climbed by 0.68 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 16.26 %. Profit before tax declined annually by -60.34 % but saw a reduction from the preceding quarter by -31.41 %.
Tax expenses as a percentage of profits increased slightly by 6.91 % compared to last year, with a more notable quarter-on-quarter increase of 4.15 %. Net profit fell by -64.29 % year-on-year but witnessed a -34.42 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -64.32 % but a quarterly fall of -35.03 %. In summary, JSW Steel Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 42213 Cr | Rs. 46269 Cr | Rs. 42943 Cr | -7.19 % | + 1.73 % |
Expenses | Rs. 35167 Cr | Rs. 40145 Cr | Rs. 37433 Cr | -6.76 % | + 6.44 % |
Operating Profit | Rs. 7046 Cr | Rs. 6124 Cr | Rs. 5510 Cr | -10.03 % | -21.8 % |
Net Profit | Rs. 2428 Cr | Rs. 1322 Cr | Rs. 867 Cr | -34.42 % | -64.29 % |
EPS in Rs | Rs. 9.67 | Rs. 5.31 | Rs. 3.45 | -35.03 % | -64.32 % |
In reviewing JSW Steel Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 1.73 % year-on-year growth, although there was a slight dip of -7.19 % from the previous quarter. Expenses rose by 6.44 % compared to the previous year, with a decrease of -6.76 % quarter-on-quarter. Operating Profit dropped by -21.8 % annually, and saw a -10.03 % decrease from the last quarter.
Net Profit showed yearly decrease of -64.29 %, and experienced a -34.42 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -64.32 % annually, however dipped by -35.03 % compared to the last quarter. In essence, while JSW Steel Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.