JSW Steel Q1 Results: Profit Jumps Nearly Threefold Beating Estimates

Consolidated crude steel production grew 11.4% year-on-year to 6.43 million tonne in Q1 FY24, while consolidated steel sales rose 27.17% to 5.71 million tonne. The share of value-added products increased to 61% of total sales from 60% in the fourth quarter of FY24

This massive growth in profits was also driven by reduced costs, apart from volume expansion. The cost of materials consumed dropped by Rs 2,316 crore year-on-year, a 15.2% decline, while power and fuel costs fell by Rs 652 crore year-on-year (18.4%). Operating costs for Indian operations were lower due to elevated commodity price environment

The company plans to increase capacity by 6.5 million tons in FY24 from Vijayanagar and Bhushan Power and Steel expansion. The company has already spent Rs.4,094 crore of the planned Rs 18,800 crore in FY24.

Shares of JSW Steel are trading 1% higher at Rs 807.05 apiece, compared to a 1.13% drop in the benchmark NSE Nifty 50 at 12.43 pm. The stock rose over 3% intraday to touch all-time high of Rs 823.35.