JSW Steel shares fell over 4% to Rs 525.75 on the BSE in intraday trade on Monday, amid an otherwise robust market, after the company posted dismal earnings figures in Q4FY22.

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In the March quarter, the company’s consolidated profit after tax (PAT) fell 20% year on year (YoY) to Rs 3,343 crore due to higher raw material costs, reduced net sales realisation, and an impairment provision. Last year, the company’s net profit was Rs 4,191 crore.

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JSW’s revenue from operations, on the other hand, was the biggest ever, jumping 74% year on year to Rs 46,895 crore due to increased capacity utilisation and additional output from the Dolvi Phase II expansion.

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The quarter’s consolidated earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin was 19.6%, compared to 31.3% in Q4FY21 and 24% in Q3FY22.

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Meanwhile, JSW Steel announced a merger with Monnet Ispat, which had previously been bought under NCLT in a joint venture with Aion Capital.

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This will result in an increase of 0.9 million tonnes of steel capacity and a 1.2% drop in equity. The 5mt increase at Dolvi, as well as the merger with Bhushan Power & Steel, will contribute to increased volumes (BPSL).

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JSW Steel rebounded from its intra-day low and was trading 2.31% down at Rs 536.00 at 12:20 p.m., compared to a 1.88% advance in the S&P BSE Sensex.

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On May 26, 2022, the stock reached a 52-week low of Rs 520.10. On April 19, 2022, it reached a 52-week high of Rs 789.95.