JSW Steel on Friday fell into the red, posting Rs 582 crore consolidated loss for the quarter ended June 2020. The company had posted a net profit of Rs 1,008 crore during the corresponding quarter of the previous financial year, JSW Steel said in a BSE filing.
Its total income during April-June 2020 also declined to Rs 11,914 crore, compared with Rs 19,953 crore in the year-ago period.
The firm's total expenses also dropped to Rs 12,504 crore, against Rs 18,164 crore a year ago.
In a statement, the company said the first quarter was marked by formidable challenges such as disrupted supply chains, unparalleled drop in demand and activity levels in the markets, and liquidity constraints.
The COVID-19 outbreak and measures to contain it caused an abrupt disruption and slowdown in economic activities. With significant supply chain constraints, shortage of workforce and with a view to ensure safety across all areas of operations, the company scaled down or suspended operations towards the end of March 2020, it said.
The company was able to commence operations across all locations towards the end of April 2020, with necessary precautions. Since then, operations have gradually been ramped up; and for May and June, the firm's facilities operated at an average capacity utilisation of 80 per cent, it said.
During the April-June 2020 quarter, the company produced 2.96 million tonnes (MT) of steel, down from 4.24 MT in the year-ago quarter.
The sales were also down to 2.80 MT, against 3.75 MT a year ago.
The company said that in India, economic activities are picking up across the board, reflecting improved business sentiment on the back of easing of lockdown restrictions.
However, localised lockdowns driven by the resurgence of COVID-19 cases remain a key challenge to sustain the pace of recovery, it added.
Part of JSW Group, JSW Steel Ltd has significant presence in sectors such as steel, energy, infrastructure, cement, and sports among others.
