 "JSW Steel Q3FY25 results: Net profit down 70% on lower steel prices")
JSW Steel on Friday reported a 70.3 per cent year-on-year (Y-o-Y) decline in consolidated profit to Rs 717 crore for the October-December quarter (Q3FY25) on lower steel prices.
In the year-ago period, the flagship firm of the Sajjan Jindal group had reported a profit of Rs 2,415 crore. The firm logged a profit of Rs 439 crore in the previous quarter (Q2FY25)
Total revenues on a consolidated basis stood at Rs 41,378 crore, down 1.3 per cent Y-o-Y from Rs 41,940 crore.
Revenue and profit missed Bloomberg estimates by 1 per cent and 3 per cent, respectively.
Sequentially, however, revenue was up by 4.3 per cent and profit up by 63.3 per cent as fall in steel realisations was offset by higher volumes and lower costs, primarily coking coal.
The company recorded its highest-ever quarterly consolidated crude steel production at 7.03 million tonnes (mt), higher by 2 per cent Y-o-Y and 4 per cent Q-o-Q. Steel sales for the quarter stood at 6.71 mt, higher by 12 per cent Y-o-Y and 10 per cent Q-o-Q.
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Domestic sales during the quarter were the highest ever at 5.99 mt, up 14 per cent Y-o-Y. The company attributed it to strong institutional and retail sales.
Exports constituted 8 per cent of sales from the Indian operations for Q3FY25 compared to 7 per cent in Q2FY25.
However, operating Ebitda of Indian operations at Rs 5,564 crore for the quarter was lower by 20 per cent Y-o-Y.
Lower steel prices also reflected on global operations. JSW Steel USA Ohio reported an Ebitda loss of $15.58 million for the quarter, mainly on lower sales realisation.
The company’s consolidated capex spending during Q3FY25 was Rs 3,087 crore, and the total spend for nine months was Rs 10,937 crore.
Net debt as of December 31, 2024, stood at Rs 80,921 crore, lower by Rs 1,884 crore as against September 30, 2024, on cash generated from operations and release of working capital.
JSW, while commenting on the outlook, said while global inflation was moderating, price pressures persist in certain sectors, particularly services, in the US and Europe. “Potential tariff escalations and ongoing geopolitical tensions pose risks to inflation and global growth,” it said.
The company also said India’s growth has experienced some moderation recently, but a recovery is expected in Q4 driven by government capex spending and improved rural consumption supported by a strong kharif harvest and a favourable rabi outlook.