A sharp decline in steel prices dragged Sajjan Jindal led JSW Steel to losses in the second quarter of the year with India’s largest steel producer ending the September quarter at a loss of Rs 915 crore on a consolidated basis.

The company had a net profit of Rs 7,179 crore a year ago, while in the first quarter of this fiscal, the profit stood at Rs 839 crore.

Every major subsidiary of JSW, viz. Bhushan Power & Steel Ltd, JSW Steel Coated Products and JSW Ispat Special Products also posted losses in Q2FY23, dragging down the overall performance.

On a standalone basis, the loss was about Rs 91 crore in the reporting quarter.

The change in fortune came despite a 32 per cent rise in sale of steel to 5.01 million tonnes over 3.79 MT in Q2FY22 by JSW, mainly on account of the expansion of the Dolvi plant. Led by volume, total income stood at Rs 41,966 crore, up by 25 per cent from Rs 33,449 crore a year ago.

The company attributed the sharp deterioration in financial matrix to a fall in steel prices, coupled with the lag effect in reaping the benefit of lower raw material cost of coking coal and iron ore.

Net realisable value provision and inventory loss, mark-to-market unrealised loss on foreign currency loans and payment of export duty on exports further impacted the operating performance.