ASW steel Q4 Result

 ASW NET PROFIT FELL BY 64%:

ASW STEEL

ASW Steel's Financial Performance for the Quarter Ended March 31, 2024

Net Profit:

•    The net profit attributable to owners plunged 64.5%, amounting to Rs 1,299 crore.

•    In comparison, the net profit for the same quarter last year was Rs 3,664 crore.

Revenues:

•    Revenues for the quarter stood at Rs 46,269 crore.

•    This is a slight decline from Rs 46,962 crore reported in the fourth quarter of 2023.

ASW STEEL TO ACQUIRE 92.2% STAKE IN MOZAMBIQUE-BASED MINING FIRM FOR $73.8 MILLION:

steel of ASW

JSW Steel's board has approved the acquisition of Mozambique-based mining company Minas de Revuboe (MDR) to access high-quality coking coal. The acquisition, costing $73.75 million, will be executed through JSW Natural Resources Limited, providing access to over 800 metric tonnes of premium coking coal in Mozambique's Moatize Basin. This deal requires approval from Mozambique's Ministry of Mineral Resources and Energy and customary regulatory clearances.

1. Acquisition Details:

   Company Acquired: Minas de Revuboe (MDR)

   Stake Acquired: 92.19% equity and shareholders loans

   Cost: $73.75 million

   Location: Moatize Basin, Tete Province, Mozambique

   Coking Coal Reserves: 800+ metric tonnes

2. Strategic Importance:

    Enhances JSW Steel's coking coal supply

    Aids in achieving production targets: 37 MTPA by FY25 and 50 MTPA by 2030

3. Regulatory Approval:

    Required from Mozambique's Ministry of Mineral Resources and Energy

    Other customary approvals needed

4.Coking Coal Supply Strategy:

•  JSW Steel plans to explore acquisitions and alliances to ensure consistent coking coal supply.

•  Talks are ongoing for a 20% stake in Australia's Blackwater coal mine for $750 million to $1 billion.

•   Previous acquisition attempts in Canada's Teck Resources metallurgical coal business were unsuccessful.

•   Indian steelmakers largely import coking coal, predominantly from Australia, with additional sources from Russia, the USA, and Canada.

  

5.Market Conditions:

•    Rising coking coal prices have increased production costs for steelmakers.

•    JSW Steel aims to mitigate these costs through strategic coal acquisitions.

6.Financial Performance:

• Q4 result

•   Net profit fell by 65% to Rs 1,299 crore due to higher expenses and low other income.

STOCK NAME OF ASW STEEL:

• JSW Steel Limited is the stock name for ASW Steel.

•  As of May 15, 2024, the current stock price of JSW Steel is ₹875.70, down 0.66% from the previous close.