After JSW Steel announced that it had been selected as the preferred bidder for Codli Mineral Block XII in Dharbandora, Goa, the company’s shares dropped 1% to their day’s low of Rs 937.25 on the BSE.
“The company is declared as ‘Preferred Bidder’ with the highest final offer price at 92.60% of the value of mineral dispatched,” the company said in an exchange filing.
In addition to the 2.7 million tonnes of ore in landfills, 48.5 million tonnes of iron ore are anticipated to be available, according to JSW Steel.
In order to complete the lease deed with the Mine Development and Production Agreement (MDPA) and begin mining operations, the business will take all necessary actions to secure a Letter of Intent and statutory clearances.
A commercial agreement has been reached between JSW Steel and Metinvest Adria S.p.A., according to a separate filing by JSW Steel.
“As per the agreement, Metinvest is obliged to pay a release fee of Euro 30 million to JSW Steel Italy Piombino SpA. as an all-inclusive consideration for the transaction,” the filing said.
In contrast to the Rs 2,773 crore recorded in the same quarter the previous year, JSW Steel posted a net profit of Rs 404 crore for the September quarter. Compared to the previous year, the bottom line fell by 85%. When the company gave up one mining lease, it claimed a one-time loss of Rs 342 crore.
Revenue for the quarter was Rs 39,684 crore compared to Rs 44,584 crore. EBITDA, or operational profit, for JSW Steel, was Rs 5,437 crore. The margin was 13.7%. Gross margins have benefited from EBITDA’s superior performance on inventory credit.
The benchmark Sensex rose 0.31% on Tuesday, while JSW Steel’s shares ended the day at Rs 947, down 0.2% on the BSE. The company now has a market valuation of Rs 2,31,755 crore after its shares have increased 34% over the last two years and 8% so far in 2024.
