The stock price of JSW Steel had been on the gain for the past two days in anticipation of a robust Q3 show. It had closed on Friday at Rs.271.95 and today, it opened over 2% lower, going down to an intraday low at Rs.258.35, a fall of 5%.

The company, for Q3FY20, posted a 12% (YoY) drop in consolidated revenue at Rs.17,805 crore but the biggest shocker was the 88% fall in net profit at Rs.187 crore.

EBITDA fell 51% at Rs.2201 crore and margins dropped sharply from 22.2% to 12.4%.

Consolidated EBITDA per tonne was at Rs.6,622 v/s Rs.12,224 (YoY) – that in itself should indicate the impact of the lower steel prices.

The performance was impacted  by a fall in local steel prices and new automotive contracts getting renewed at much lower prices.

Though the company, on a standalone basis posted a net profit of Rs.691 crore, the consolidated numbers were impacted by losses at its overseas subsidiaries in USA and Italy.

The company’s management maintained its FY20 guidance of 16.5 million tonnes of steel production and 15.5 million tonnes (mt) of sales.