Informist, Friday, Jul. 18, 2025

By Rajesh Gajra

NEW DELHI – The largest steel manufacturer in the country JSW Steel Ltd. beat analyst estimates on both net profit and revenue for the June quarter. Strong domestic sales volume growth and lower raw material costs resulted in a strong growth in the operating profit in the June quarter. The bottom line tracked the operating profit growth and was also aided by a jump in other income.

The steel maker's consolidated net profit for the June quarter jumped up 2.6 times to INR 21.84 billion. It was above analysts' average estimate of INR 19.98 billion. The consolidated revenue from operations of the company increased 0.5% on year to INR 431.47 billion, which was a little above the Street view of INR 429.48 billion.

The company's revenue recorded an on-year growth in the June quarter after three consecutive quarters of decline. Sequentially, the revenue was down 3.7% while the net profit was up 45%.

JSW Steel said its total steel sales for the June quarter rose 9% on year to 6.69 million tonnes on the back of a consolidated production volume growth of 14% to 7.26 million tonnes. Weak realisations, however, led to muted revenue growth. The domestic sales of steel rose 12% on year to 5.96 million tonnes.

The company said domestic steel demand continues to be good, with government capital expenditure being a contributing factor. But low priced steel imports remained a concern, "accentuated by changes in global trade flows due to rising tariff uncertainties," the company said in an earnings press release. Although there has been some reduction in steel production in China in recent months, elevated Chinese exports continue to be a challenge for the industry, the company said.

The company said in an earnings investor presentation Friday its steel production guidance for 2025-26 (Apr-Mar) is 30.5 million tonnes and for steel sales is 29.2 million tonnes. These guidance figures are unchanged from those given by the company following the announcement of the March quarter earnings.

Even as the weak realisations hit the top-line growth of JSW Steel, the company's operating profit, or operating earnings before interest, tax, depreciation, and amortisation, jumped 37% on year to INR 75.76 billion in the latest quarter. The EBITDA margin was 17.6% for the June quarter.

The company's India operating EBITDA rose 38% on year to INR 74.96 billion. The company said the India EBITDA per tonne was INR 11,658 for the June quarter and the margin was 18.5%. The revenue from Indian operations of the company during the quarter was INR 405.10 billion.

The EBITDA growth was primarily due to a 3.3% on-year decline in cost of materials consumed to INR 207.62 billion in the June quarter. This cost accounted for 51% of total expenses in the quarter.

JSW Steel's subsidiary Bhushan Power and Steel Ltd. recorded steel production of 0.88 million tonnes, and steel sales of 0.78 million tonnes in the June quarter. The revenue of this key subsidiary was INR 49.98 billion. Bhushan Power and Steel's operating EBITDA rose 13% on year to INR 7.6 billion for the reporting quarter. The company said this was due to higher volume and lower coking coal costs.

The company has been in the eye of a storm with respect to the Supreme Court's May 2 order rejecting the resolution plan of JSW Steel in the insolvency proceedings of Bhushan Power and Steel and ordering the liquidation of the company. JSW Steel had paid INR 193.5 billion towards the acquisition of 83.28% stake in Bhushan Power and Steel. A 500-day-plus delay in JSW Steel paying financial creditors for Bhushan Power and Steel under the resolution process got the company into trouble with the court. On Jun. 25, JSW Steel filed a review petition before the Supreme Court.

In its US operations, the Ohio unit recorded a sales volume of around 220,000 tonnes of slabs in the June quarter. The unit's EBITDA was $1.35 million for the quarter, driven by higher volume and sales realisation, the company said.

In the June quarter, the company's consolidated capex spend was INR 34 billion. JSW Steel expects to incur capex of INR 200 billion for FY26. Going forward, the company said the steel demand will be aided by expected government capex in the coming quarters. Friday, shares of JSW Steel ended flat at INR 1,034.40 on the National Stock Exchange. End

Edited by Akul Nishant Akhoury

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