Shares of the country’s leading steel manufacturer- JSW Steel fell over 2 per cent at day’s low to Rs 885.80 after the company’s consolidated net profit for the three months to March 31 fell nearly 65 per cent year-on-year (YoY) to Rs 1,299 crore on higher costs and softer steel prices. Zee Business analysts’ expected profit to come in at Rs 1600 crore, logging a 57 per cent on-year decline. The company’s PAT stood at Rs 3,741 crore in the same quarter previous year.

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The company's total income also took a hit during the reporting quarter and came in at Rs 46,511 crore as against Rs 47,427 crore reported during the corresponding period last year. Furthermore, the cost of raw materials consumed also logged an increase and stood at Rs 24,541 crore as against Rs 23,905 crore in Q4FY23. Consequently, overall expenses at the steelmaker during the period under review came in at Rs 44,401 crore versus Rs 43,170 crore a year ago.

“The O.P. Jindal group company reported a sequential fall in profit after logging three straight quarterly gains on the back of strong domestic demand, noted the Reuters report. Domestic steel prices contracted in the quarter amid weak demand in China as the world's top producer and consumer of the metal grappled with concerns in its property sector, it added.

Alongside the earnings, the company's board announced a final dividend of Rs 7.30 for FY24.

How do global brokerages view JSW Steel post its Q4 results?

Hong Kong-based global brokerage CLSA maintains its 'sell' view on the counter with a raised target price of Rs 765. Earlier, the brokerage had set the target at Rs 730. The new target translates into a possible 16 percent downside from the previous close. Meanwhile, Morgan Stanley maintained its 'underweight' call with a target of Rs 650 per share. This target means a possible drawdown of over 28 per cent.

(With inputs from agencies)

(This story will be updated shortly)