BENGALURU (Reuters) -Indian iron and steel products maker JSW Steel Ltd on Friday said third-quarter profit tanked 89%, hurt by lower exports.
Consolidated net profit for the quarter ended Dec. 31 fell to 4.90 billion rupees ($60.36 million) from 43.57 billion rupees ($536.71 million) a year earlier, the company said in an exchange filing.
Exports slumped 56% from a year earlier to 1.14 million tonnes, the company said.
Mumbai-based JSW is the first steel company to report quarterly earnings, potentially setting the tone for the industry.
Profit was hit by a fall in steel prices and muted demand during most part of the quarter after the Indian government introduced an export tax in May.
The 15% tax imposed on certain products was repealed late in November which JSW expects will bolster its sagging exports.
Meanwhile, exports to China were hit by an industrial slowdown following a resurgence in COVID-19 cases.
JSW said a reversal of zero-COVID policy in China and moderating inflation globally should aid growth in the second half of this year.
The company’s revenue rose 2.8% to 391.34 billion rupees.
JSW Steel saw its profit expand from the previous quarter as the impact of lowered coking coal prices, a key steel-making raw material, flowed through. The company posted a surprise loss in the second quarter in the face of a sharp fall in steel prices.
($1 = 81.1550 Indian rupees)
(Reporting by Varun Vyas;Editing by Dhanya Ann Thoppil and Sohini Goswami)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.