JSW Steel Posts 16% Profit Growth In January-March

JSW Steel Ltd. reported a 16% on-year rise in consolidated net profit for the March quarter to ₹15.03 billion, marking the first on-year profit growth in five quarters. The uptick was driven by higher output and lower raw material costs, although the figure fell short of Street estimates pegged at ₹17.98 billion.

Sequentially, net profit more than doubled on the back of lower coking coal prices and a rebound in sales. The company had also absorbed a one-time cost of ₹1.03 billion in the December quarter following the termination of two coal blocks by the government.

Crude steel production for the quarter rose 12% on year to 7.63 million tonnes, while sales volume stood at 7.49 million tonnes, up 11% on year. Of this, Indian operations accounted for 6.72 million tonnes—30% higher than a year ago.

Revenue from operations slipped 3% on year to ₹448.19 billion but grew 8% sequentially. Operating EBITDA rose 14% on quarter to ₹63.78 billion, helped by lower input costs, and EBITDA margin for the quarter stood at 14.2%.

For the full year, consolidated net profit slumped 60.2% to ₹35.04 billion, while revenue fell 3.5% to ₹1.69 trillion. In 2024-25, the company sold 26.45 million tonnes of steel and produced 27.79 million tonnes. It now expects to sell 29.20 million tonnes in 2025-26, with output seen rising to 30.50 million tonnes.

Capital expenditure for the year stood at ₹146.56 billion, with ₹37.19 billion spent in January-March. JSW Steel expects to ramp up capex to ₹200 billion in 2025-26.

Consolidated net debt fell to ₹765.63 billion at the end of March, down ₹43.58 billion from the previous quarter, aided by healthy cash flows and prudent spending.

The board approved plans to raise up to ₹190 billion via a mix of non-convertible debentures and qualified institutional placement. A final dividend of ₹2.80 per share was also declared.