Strong Q2, healthy prospects: Stock may be pricing in near-term positives

The completion of ongoing capex may increase steelmaking capacity to 37 million tonnes (mt) by FY25. Beyond that, JSW Steel aims to reach 50 mt capacity by FY31

JSW Steel’s results for the July-September quarter (Q2) of FY24 was a significant Street beat. Consolidated net sales grew about 7 per cent year-on-year (Y-o-Y) and about 5 per cent quarter-on-quarter (Q-o-Q) to Rs 43,800 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) rose by 350 per cent Y-o-Y and about 12 per cent Q-o-Q to Rs 7,900 crore. Adjusted profit after tax (PAT) was at Rs 3,060 crore versus a loss of Rs 1,300 crore in Q2FY23 and PAT of Rs 2,300 crore in Q1FY24.

The completion of ongoing capex may increase steelmaking capacity to 37 million tonnes