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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -10.99 % over the year, decrease in net sales/revenue by -7.59 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -122.88 %, Marginal decrease of -215.24% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for JSW Steel Limited. Profit dropped by -85.43 % Year to Year, JSW Steel Limited’s profitability dropped by -53.4 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -84.18 % Year to Year. EPS decreased by -48.13 % 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. 44584 Cr | Rs. 42943 Cr | Rs. 39684 Cr | -7.59 % | -10.99 % |
| Expenses | Rs. 36722 Cr | Rs. 37445 Cr | Rs. 34309 Cr | -8.37 % | -6.57 % |
| Operating Profit | Rs. 7862 Cr | Rs. 5498 Cr | Rs. 5375 Cr | -2.24 % | -31.63 % |
| OPM % | 17.63 % | 12.8 % | 13.54 % | + 0.74 % | -4.09 % |
| Other Income | Rs. 826 Cr | Rs. 164 Cr | Rs. -189 Cr | -215.24 % | -122.88 % |
| Interest | Rs. 2084 Cr | Rs. 2073 Cr | Rs. 2130 Cr | + 2.75 % | + 2.21 % |
| Depreciation | Rs. 2019 Cr | Rs. 2209 Cr | Rs. 2267 Cr | + 2.63 % | + 12.28 % |
| Profit before tax | Rs. 4585 Cr | Rs. 1380 Cr | Rs. 789 Cr | -42.83 % | -82.79 % |
| Tax % | 39.31 % | 36.85 % | 45.24 % | + 8.39 % | + 5.93 % |
| Net Profit | Rs. 2773 Cr | Rs. 867 Cr | Rs. 404 Cr | -53.4 % | -85.43 % |
| EPS in Rs | Rs. 11.33 | Rs. 3.45 | Rs. 1.8 | -47.83 % | -84.11 % |
Today, we’re looking at JSW Steel Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a significant year-over-year sales decline of -10.99 %. However, it did see a marginal slip of -7.59 % from the previous quarter. Expenses decreased slightly by -8.37 % quarter-on-quarter, aligning with the annual decline of -6.57 %. Operating profit, while down -31.63 % compared to last year, faced a quarter-on-quarter dip of -2.24 %, 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 -4.09 %, but an expansion of 0.74 % sequentially. Other income fell by -215.24 % compared to the last quarter, despite an annual decline of -122.88 %. Interest expenses surged remarkably by 2.75 % from the previous quarter, yet the year-over-year increase remains at a moderate 2.21 %. Depreciation costs climbed by 2.63 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 12.28 %. Profit before tax declined annually by -82.79 % but saw a reduction from the preceding quarter by -42.83 %.
Tax expenses as a percentage of profits increased slightly by 5.93 % compared to last year, with a more notable quarter-on-quarter increase of 8.39 %. Net profit fell by -85.43 % year-on-year but witnessed a -53.4 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -84.11 % but a quarterly fall of -47.83 %. 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. 44584 Cr | Rs. 42943 Cr | Rs. 39684 Cr | -7.59 % | -10.99 % |
| Expenses | Rs. 36722 Cr | Rs. 37445 Cr | Rs. 34309 Cr | -8.37 % | -6.57 % |
| Operating Profit | Rs. 7862 Cr | Rs. 5498 Cr | Rs. 5375 Cr | -2.24 % | -31.63 % |
| Net Profit | Rs. 2773 Cr | Rs. 867 Cr | Rs. 404 Cr | -53.4 % | -85.43 % |
| EPS in Rs | Rs. 11.33 | Rs. 3.45 | Rs. 1.8 | -47.83 % | -84.11 % |
In reviewing JSW Steel Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -10.99 % year-on-year, although there was a slight dip of -7.59 % from the previous quarter. Expenses decreased by -6.57 % compared to the previous year, with a decrease of -8.37 % quarter-on-quarter. Operating Profit dropped by -31.63 % annually, and saw a -2.24 % decrease from the last quarter.
Net Profit showed yearly decrease of -85.43 %, and experienced a -53.4 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -84.11 % annually, however dipped by -47.83 % 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.
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