Jayant Acharya, Joint MD & CEO, JSW Steel. Photo: Special Arrangement

JSW JFE Electrical Steel will raise production of the steel at its Nashik plant to 2,50,000 tons per annum from the current 50,000 TPA.
| Photo Credit: Reuters

The logo of JSW is seen on the company’s headquarters in Mumbai.
| Photo Credit: Reuters

JSW Steel on Friday (January 24, 2025) reported over 70% fall in consolidated net profit to ₹719 crore in December quarter, mainly due to higher expenses.

It had posted a net profit of ₹2,450 crore in the year-ago quarter, the company said in an exchange filing.

Total income during the latest third quarter also trimmed to ₹41,525 crore from ₹42,134 crore a year ago.

The company increased its expenses to ₹40,250 crore during the reporting period from ₹38,815 crore in the third quarter last fiscal.

The company’s consolidated capital expenditure (capex) during the third quarter of current fiscal was ₹3,087 crore, while its overall capex spend for April-December period stood at ₹10,937 crore.

In a separate statement, the company said, “The Profit after Tax for the quarter was ₹719 crores after considering an exceptional charge of 103 crores.”

The company’s revenue from operations stood at ₹41,378 crore and its operating EBITDA (earnings before interest, taxes and amortisation) at ₹5,579 crore during the quarter.

The EBITDA increased by 3% quarter-on-quarter (QoQ) as fall in steel price realisations was offset by higher volumes and lower costs primarily coking coal.

Net debt as of December 31, 2024 stood at ₹80,921 crore, lower by ₹1,884 crore compared to the figure of September end, on cash generated from operations and release of working capital.

JSW Steel said its consolidated crude steel production for the quarter stood at 7.03 million tonnes, higher by 2% year-on-year (YoY) and 4% QoQ. Capacity utilisation at the Indian operations was 91% during the quarter.

Steel sales for the quarter stood at 6.71 million tonnes, higher by 12% YoY and 10% QoQ.

Shares of online food delivery firm Zomato climbed nearly 4%. File
| Photo Credit: REUTERS

Shares of online food delivery firm Zomato climbed nearly 4% on Monday (November 25, 2024) following news that it will become a part of the BSE benchmark Sensex from December 23.

The stock jumped 3.58% to settle at ₹273.60 on the BSE. During the day, it soared 7.62% to ₹284.30.

Zomato will become a part of the benchmark BSE Sensex, replacing JSW Steel on December 23.

This is part of the latest reconstitution announced by Asia Index Private Ltd, a subsidiary of BSE. The changes will take effect on December 23, 2024, the Asia Index announced.

Shares of JSW Steel declined 2.40% to ₹953.35, becoming the biggest laggard among the Sensex firms.

Zomato’s inclusion in the 30-stock index marks a significant milestone for the company, which has seen an impressive rally over the past year.

JSW Steel’s expenses were lower at ₹38,644 crore in the quarter under review against ₹40,801 crore in the year-ago quarter. File
| Photo Credit: Reuters

Steelmaker JSW Steel on Friday (October 25, 2024) reported a steep fall of 85.43% in its consolidated net profit at ₹404 crore in the July-September quarter of the current fiscal, affected by lower income.

The company had posted a net profit of ₹2,773 crore in the second quarter of the last financial year. “The total income decreased to ₹39,837 crore in the second quarter of the current fiscal as against ₹44,821 crore a year ago,” JSW Steel said in a regulatory filing.

JSW Steel’s expenses were lower at ₹38,644 crore in the quarter under review against ₹40,801 crore in the year-ago quarter.

In a statement, the company said its net debt stood at ₹85,098 crore as of September 30, higher by ₹4,899 crore as against June 30 due to capex on ongoing expansion projects, acquisition of an effective stake of 20% in Illawarra coking coal asset and increase in working capital.

The company’s capex spend during Q2 FY25 stood at ₹3,384 crore and the total spend for H1 stood at ₹7,850 crore.

“We now expect consolidated capex for FY25 to be ₹16,000-17,000 crore as against the earlier estimate of ₹20,000 crore mainly due to the transfer of Slurry Pipeline project to JSW Infrastructure and rescheduling the BF-3 expansion to next year,” the company said.

The company produced 6.77 million tonnes (MT) of crude steel in July-September 2024, up 7% compared to 6.34 MT in the same quarter of FY23. Sales decreased by 4% to 5.96 MT in the quarter from 6.34 MT a year ago. Exports contributed 7% from India operations.

The exports at 0.39 million tonnes fell by 43% year-over-year (YoY) and 34% quarter on quarter (QoQ) due to elevated Chinese exports adversely affecting global markets.

The capacity utilisation at the Indian operations improved to 91% during the quarter, post-completion of planned maintenance shutdowns at Dolvi and subsidiary BPSL (Bhushan Power and Steel Limited) in the last quarter.

At the end of the September quarter, JSW Steel said net gearing (or net debt to equity) stood at 1.04 times as against 0.97 times at the end of Q1 FY25, and leverage (net debt to EBITDA) stood at 3.51 times, as against 3 times at the end of Q1 FY25.

During the quarter, JSW Steel surrendered Jajang Iron Ore mine located in the district of Keonjhar, Odisha, owing to operations being economically unviable. BPSL reported a loss of ₹93 crore for the quarter owing to the lower EBITDA. Revenue from Operations and Operating EBITDA for the quarter stood at ₹4,900 crore and ₹431 crore, respectively.

The company commissioned all major facilities to expand its capacity from 3.5 MTPA to 4.5 MTPA, which is under ramp-up. Its crude steel production for the quarter stood at 0.82 million tonnes and Sales volume at 0.74 million tonnes.

JSW Steel Coated Products reported a net profit of ₹57 crore for the quarter. Revenue from operations stood at ₹7,695 crore, and EBITDA was ₹341 crore. The EBITDA is lower by 7% on QoQ basis mainly owing to lower realisations, partially offset by lower HRC (hot rolled coil) prices.

JSW Steel USA Ohio produced 1,56,137 net tonnes of slabs during the quarter. It reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss of $16.14 million for the quarter, mainly owing to lower sales realisation.

U.S. Plate & Pipe Mill in Texas, USA produced 1,08,969 net tonnes of Plates and 9,687 net tonnes of Pipes. It reported an EBITDA of $5.04 million, a lower QoQ owing to lower input slab cost not fully offsetting lower plate prices.

The Italy-based rolled long products manufacturing facility produced 83,376 tonnes and sold 78,921 tonnes of rolled products during the quarter. It reported an EBITDA of Euro 6.15 million for the quarter.

On October 18, Jsquare Electrical Steel Nashik, an arm of a 50:50 JV company of JSW Steel and JFE, announced it has entered into a share purchase agreement to acquire 100% equity shares of thyssenkrupp Electrical Steel India (tkES) for ₹4,051.40 crore.

Exchange Data said that FIIs bought equities worth ₹2,208.23 crore on Tuesday (September 10, 2024). File
| Photo Credit: Reuters

Equity benchmark indices declined in early trade on Wednesday (September 11, 2024) after two days of gains amid selling in Tata Motors and weak trends in Asian markets.

The 30-share BSE Sensex fell 111.85 points to 81,809.44. The NSE Nifty dipped 39.2 points to 25,001.90.

Among the 30 Sensex firms, Tata Motors, ICICI Bank, Titan, HDFC Bank, JSW Steel, Tech Mahindra, UltraTech Cement and Axis Bank were the major laggards.

Asian Paints, Bharti Airtel, ITC and Hindustan Unilever were among the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

The U.S. markets ended mostly with gains on Tuesday (September 10, 2024).

Foreign Institutional Investors (FIIs) bought equities worth ₹2,208.23 crore on Tuesday (September 10, 2024), according to exchange data.

Global oil benchmark Brent crude climbed 0.59% to $69.60 a barrel.

The BSE benchmark climbed 361.75 points or 0.44% to settle at 81,921.29 on Tuesday (September 11, 2024). The NSE Nifty surged 104.70 points or 0.42% to 25,041.10.

JSW Steel Limited is a leading integrated steel producer with a presence in India and international markets. File
| Photo Credit: Reuters

JSW Steel on Tuesday announced plans to set up a grain oriented electrical steel manufacturing facility through a joint venture with JFE Steel Corporation at an estimated investment of ₹5,500 crore.

Japan-bases JFE Corporation also holds a 15% share in JSW Steel.

A groundbreaking ceremony marking the initiation of this partnership was held on February 12, JSW Steel said in a statement.

JSW Steel Limited announced the establishment of a 50:50 JV with JFE Steel Corporation, Japan for the production of Grain Oriented Electrical Steel in India.

“The new company, JSW Electrical Steel Private Limited, to be renamed JSW JFE Electrical Steel Private Limited will have its manufacturing base in district Bellary, Karnataka and will be set up with a planned investment of Rs 5,500 crores,” the statement said.

The facility is targeting to commence production in the fiscal year 2027 and the company plans to further expand its capacity to meet the growing market demand for grain-oriented electrical steel in India.

The JV company aspires to cater to the surging domestic demand for grain oriented electrical steel and contribute significantly to the country’s energy infrastructure, it said.

Grain-oriented electrical steel plays a pivotal role in the production of energy-efficient transformers.

“Whether in laminated, wound, or punched sheet form, it serves as the essential core material for distribution transformers, power transformers, and small transformers,” JSW Steel said.

JSW Steel Limited is a leading integrated steel producer with a presence in India and international markets.

JFE Steel Corporation is a global firm with a strong commitment to technological innovation and sustainable practices.