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Net
sales (including other operating income) of JSW Steel has declined 1.34% to Rs
41378 crore. Operating profit margin has
declined from 17.12% to 13.48%, leading to 22.30% decline in operating profit
to Rs 5,579.00 crore. Raw material cost
as a % of total sales (net of stock adjustments) increased from 52.70% to
53.80%. Purchase of finished goods cost
fell from 0.50% to 0.27%. Employee cost
increased from 2.57% to 2.79%. Other
expenses rose from 28.64% to 29.57%.
Power and Oil fuel cost rose from 8.32% to 9.94%. Other direct service cost fell from 5.90% to
4.91%.
Other
income fell 24.23% to Rs 147 crore.
PBIDT fell 22.35% to Rs 5726 crore.
Provision for interest rose 5.96% to Rs 2115 crore.
The
company registered operating EBITDA of Rs 5,579 crores, with an EBITDA margin
of 13.5% during the quarter. The EBITDA increased by 3% QoQ as fall in steel
realisations was offset by higher volumes and lower costs primarily coking
coal.
Consolidated
crude steel production for the quarter stood at 7.03 million tonne, higher by
2% YoY and 4% QoQ. Capacity utilization at the Indian operations was 91% during
the quarter. Steel sales for the quarter stood at 6.71 million tonne, higher by
12% YoY and 10% QoQ.
PBDT
fell 32.86% to Rs 3611 crore. Provision
for depreciation rose 13.45% to Rs 2336 crore.
Profit
before tax down 61.58% to Rs 1,275.00 crore.
Provision for tax was expense of Rs 459 crore, compared to Rs 853
crore. Effective tax rate was 38.96% compared
to 25.83%.
Minority
interest decreased 94.29% to Rs 2.00 crore.
Net profit attributable to owners of the company decreased 70.31% to Rs
717.00 crore.
Promoters’
stake was 44.85% as of 31 December 2024 ,compared to 44.81% as of 31 December
2023 . Promoters pledged stake was
14.07% as of 31 December 2024 ,compared to 14.80% as of 31 December 2023 .
Net
Debt as of 31st December 2024 stood at Rs 80,921 crore, lower by Rs 1,884
crores as against 30th September 2024, on cash generated from operations and
release of working capital. At the end of the Quarter, Net Gearing (Net Debt to
Equity) stood at 1.00x as against 1.01x at the end of Q2FY25, and leverage (Net
Debt to EBITDA) stood at 3.57x, as against 3. 41x at the end of Q2FY25.
Indian Operations
Performance
Crude
steel production at the Indian operations for the quarter was at 6.82 million
tonnes, higher by 3% YoY as well as QoQ. Steel sales for the quarter were 6.54
million tonne, higher by 12% YoY and 10% QoQ. Domestic sales during the quarter
were highest ever at 5.99 million tonnes, growing 8% QoQ and 14% YoY, supported
by strong institutional and retail sales. A better product mix resulted in
sales of VASP at 3.9 million tonne, which increased by 9% QoQ and 12% YoY.
Exports constituted 8% of sales from the Indian operations for Q3 FY25 vs. 7%
of sales in Q2 FY25.
Operating
EBITDA of the Indian Operations was Rs 5,564 crore for the Quarter, lower by
20% YoY and higher by 1% QoQ. The EBITDA per ton was Rs 8,516 per ton and
margin for the Quarter was 14.1%. Profit after Tax at Rs 1,091 crores for the
quarter was down by 57% YoY and increased by 31% QoQ.
Standalone
Performance
Standalone
crude steel production for the quarter was at 5.70 million tonnes, lower by
0.4% YoY and 1% QoQ. Steel Sales for the quarter were 5.59 million tonnes,
higher by 7% YoY and 6% QoQ.
Standalone
revenue from operations during the quarter was Rs 31,799 crore, lower by 5% YoY
and higher by 3% QoQ. Standalone operating EBITDA at Rs 4,397 crores for the
Quarter was lower by 24% YoY and 5% QoQ. The EBITDA margin for the quarter was
13.8%. Standalone Profit after Tax of Rs 1,786 crores for the quarter was down
by 47% YoY and 1% QoQ.
Subsidiaries
performance
Bhushan Power &
Steel (BPSL):
Crude steel production for the quarter stood at 0.96 million tonnes and
finished steel sales were 0.88 million tonnes. Revenue from Operations and
Operating EBITDA for the quarter stood at Rs 5,340 crores and Rs 541 crores, respectively.
The EBITDA increased by 25% QoQ mainly due to higher volumes and lower coking
coal prices which was partially offset by lower sales realisation. BPSL
reported a Profit after Tax of Rs 11 crores for the quarter.
JSW Steel Coated
Products (Consolidated): During the quarter, JSW Steel Coated Products
registered production volume (GI/GL, Tin, CRCA & other saleable products)
of 1.15 million tonnes and sales volume of 1.15 million tonnes as well. Revenue
from operations for the quarter stood at Rs 8,600 crores, and EBITDA was Rs 496
crores. The EBITDA is higher by 45% QoQ driven by higher sales volumes and
accrual of PLI Incentives of Rs 73 crores for the tinplate facility. JSW Steel
Coated Products reported a Profit after Tax of Rs 170 crores for the quarter.
JSW Steel USA Ohio: The EAF-based steel
manufacturing facility in Ohio, USA, produced 2,31,872 net tonnes of Slabs
during the quarter. Capacity utilization improved to 64% during the quarter,
following a maintenance shutdown in Q2. Sales volumes for the quarter stood at
63,817 net tonnes of HRC and 1,28,394 net tonnes of Slabs. It reported an
EBITDA loss of US$ 15.58 million for the quarter, mainly due to lower sales
realisation.
US Plate & Pipe
Mill:
The plate & pipe mill based in Texas, USA produced 1,09,490 net tonnes of
Plates and 11,287 net tonnes of Pipes, reporting a capacity utilization of 43%
and 8%, respectively, during the quarter. Sales volumes for the quarter stood
at 90,796 net tonnes of Plates and 12,210 net tonnes of Pipes. It reported an
EBITDA loss of US$ 2.29 million. EBITDA was lower QoQ due to lower sales
realization as prices of plates declined during the quarter.
Italy Operations: The Italy based
Rolled long products manufacturing facility produced 68,909 tonnes and sold 65,152
tonnes of rolled products during the quarter. It reported an EBITDA of Euro
1.85 million for the quarter. EBITDA was lower QoQ mainly due to lower sales
volumes and decline in realisation.
Update on Projects:
The
Hot Strip Mill of the 5 MTPA project at Vijayanagar, set up by wholly owned
subsidiary, JSW Vijayanagar Metallics Ltd. (JVML), was commissioned in March
2024. Subsequently, the Raw Material Handling System, Sinter Plant and the
Blast Furnace were commissioned in Q2 FY25. One of the two Casters and
Converters at SMS unit have started operations during Q3 FY25. The second
Caster has also started in January 2025. It expect ramp-up of the expansion
project during Q4 FY25.
The
colour coated line of 0.12 MTPA in Jammu & Kashmir under JSW Steel Coated
Products Ltd. started operating during Q3FY25 and is under trial-run.
The
30 MTPA slurry pipeline in Odisha is also progressing well, with commissioning
expected in FY27.
The
Company`s consolidated capex spend during Q3 FY25 was Rs 3,087 crores, and the
total spend for 9M was Rs 10,937 crores.
For year-to-date
(YTD) results analysis
Net
sales (including other operating income) of JSW Steel has declined 3.68% to Rs
124005 crore. Operating profit margin
has declined from 17.18% to 13.33%, leading to 25.26% decline in operating
profit to Rs 16,526.00 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
52.17% to 52.98%. Purchase of finished
goods cost fell from 0.52% to 0.24%.
Employee cost increased from 2.60% to 2.92%. Other expenses rose from 28.01% to
30.50%. Power and Oil fuel cost rose
from 8.64% to 9.60%. Other direct
service cost rose from 5.63% to 5.75%.
Other
income fell 39.11% to Rs 464 crore.
PBIDT fell 25.72% to Rs 16990 crore.
Provision for interest rose 4.55% to Rs 6318 crore.
PBDT
fell 36.59% to Rs 10672 crore. Provision
for depreciation rose 13.95% to Rs 6812 crore.
Profit
before tax down 64.43% to Rs 3,860.00 crore.
Share of profit/loss was 8.11% higher at Rs -68 crore. Provision for tax was expense of Rs 1357
crore, compared to Rs 3717 crore.
Effective tax rate was 40.54% compared to 32.70%.
Net
profit attributable to owners of the company decreased 73.37% to Rs 2,001.00
crore.
Promoters’
stake was 44.85% as of 31 December 2024 ,compared to 44.81% as of 31 December
2023 . Promoters pledged stake was
14.07% as of 31 December 2024 ,compared to 14.80% as of 31 December 2023 .
Outlook as per
company
Global
economic growth remains steady, with the IMF forecasting 3.3% growth for 2025
compared to 3.2% for 2024. However, growth prospects are uneven, with the
robust US economy partly offset by weakness in several other economies. While
global inflation is 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.
In
the US, robust growth continues with labour markets cooling gradually. Supportive
fiscal policy such as increased
investments in domestic manufacturing and tax cuts could further
accelerate near-term growth. However, following 100 bps of rate cuts between
September and December 2024, the Fed is expected to moderate the pace of
monetary easing. Potential tariff increases could disrupt the ongoing decline
in inflation.
China
GDP growth picked up in Q4 2024 with improved trend in consumption and
manufacturing post the stimulus announcements in end-September 2024. The
Property sector continues to contract although some early and tentative signs
of stabilisation are emerging, aided by targeted policy interventions. Looking
ahead to 2025, fiscal and monetary
stimulus is expected to continue as the government prioritizes economic recovery
and structural reforms.
In
Europe, growth remains subdued, with Germany trailing other major Euro Area
economies. While manufacturing and exports continue to struggle, consumption is
showing early signs of recovery, supported by improvements in real incomes.
Modest growth is anticipated in 2025, though it is expected to remain below
pre-pandemic trends. Ongoing rate cuts are likely to support the gradual
recovery, but policy and political uncertainties continue to weigh on sentiment
and economic prospects.
In
Japan, a modest economic recovery was experienced in the second half of 2024,
with momentum expected to strengthen in 2025 as manufacturing activity
approaches stabilization. Greater conviction about inflation attaining target
levels is likely to prompt rate hikes in 2025, signalling a shift towards
normalisation of monetary policy.
The
Indian economy has experienced some moderation in growth, with advance
estimates by India`s NSO projecting GDP growth of 6.4% for FY25. However,
growth momentum is expected to pick up in Q4 FY25, supported by a recovery in
government capital expenditure. Rural consumption prospects remain strong,
driven by a robust Kharif harvest and a positive Rabi outlook. Urban
consumption faced some headwinds this year due to slower bank credit growth and
elevated food inflation. Inflation is anticipated to ease in the coming months
with improved food supplies, creating room for the RBI to begin monetary policy
easing. In the auto sector, passenger and commercial vehicle markets have
experienced a relatively modest trend this year while two-wheelers and tractors
have seen a better traction; outlook for both these segments is healthy, buoyed
by strong rural demand. Fiscal consolidation continues to progress, with the
government deficit continuing to improve.
The
scrip is currently trading at Rs 932
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JSW Steel : Consolidated Results
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Particulars
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2412 (03)
|
2312 (03)
|
Var.(%)
|
2412 (09)
|
2312 (09)
|
Var.(%)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Net Sales (including other
operating income)
|
41,378
|
41,940
|
-1
|
1,24,005
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1,28,737
|
-4
|
1,75,006
|
1,65,960
|
5
|
|
OPM (%)
|
13.5
|
17.1
|
|
13.33
|
17.2
|
|
16.13
|
11.2
|
|
|
OP
|
5,579
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7,180
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-22
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16,526
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22,112
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-25
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28,236
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18,547
|
52
|
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Other Inc.
|
147
|
194
|
-24
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464
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762
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-39
|
1,004
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1,030
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-3
|
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PBIDT
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5,726
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7,374
|
-22
|
16,990
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22,874
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-26
|
29,240
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19,577
|
49
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|
Interest
|
2,115
|
1,996
|
6
|
6,318
|
6,043
|
5
|
8,105
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6,902
|
17
|
|
PBDT
|
3,611
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5,378
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-33
|
10,672
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16,831
|
-37
|
21,135
|
12,675
|
67
|
|
Depreciation
|
2,336
|
2,059
|
13
|
6,812
|
5,978
|
14
|
8,172
|
7,474
|
9
|
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PBT
|
1,275
|
3,319
|
-62
|
3,860
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10,853
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-64
|
12,963
|
5,201
|
149
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Share of Profit/(Loss) from
Associates
|
6
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-16
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LP
|
-68
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-74
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8
|
-172
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-137
|
-26
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PBT before EO
|
1,281
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3,303
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-61
|
3,792
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10,779
|
-65
|
12,791
|
5,064
|
153
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EO Income
|
-103
|
0
|
-
|
-445
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589
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PL
|
589
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591
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0
|
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PBT after EO
|
1,178
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3,303
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-64
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3,347
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11,368
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-71
|
13,380
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5,655
|
137
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Taxation
|
459
|
853
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-46
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1,357
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3,717
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-63
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4,407
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1,516
|
191
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PAT
|
719
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2,450
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-71
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1,990
|
7,651
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-74
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8,973
|
4,139
|
117
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|
Minority Interest (MI)
|
2
|
35
|
-94
|
-11
|
138
|
LP
|
161
|
-5
|
PL
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Net profit
|
717
|
2,415
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-70
|
2,001
|
7,513
|
-73
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8,812
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4,144
|
113
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EPS (Rs)*
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#
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#
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#
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#
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34.4
|
15.2
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Notes
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* EPS is on current equity of Rs
244.55 crore, Face value of Rs 1, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate
Database
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