JSW Steel Q3 Results: Profit Falls Over 70%, Meets Estimates
JSW Steel reported a 70.3% fall in the consolidated profit at Rs 717 crore in the October-December quarter.
JSW Steel Ltd.'s net profit fell in the third quarter of fiscal 2025, but still managed to be in line with analysts' estimates. The decline came on the back of other comprehensive loss of Rs 1,391 crore, an exceptional item and higher deferred taxes.
The steel producer reported a 70.3% fall in the consolidated profit at Rs 717 crore in the October-December quarter, compared to Rs 2,415 crore in the same period last year, according to an exchange filing on Friday. Analysts polled by Bloomberg had estimated a Rs 737-crore net profit.
JSW Steel Q3 FY25 Highlights (Consolidated, YoY)
Revenue down 1.4% to Rs 41,378 crore (Bloomberg estimate: Rs 41,703 crore).
Ebitda down 22.3% to Rs 5,579 crore (Bloomberg estimate: Rs 5,259 crore).
Margins at 13.5% vs 17.1% (Bloomberg estimate: 12.6%).
Net profit down 70.3% to Rs 717 crore (Bloomberg estimate: Rs 737 crore).
Why Was Ebitda Under Pressure?
While many key expenses like material costs, stock in-trade purchases, mining premium, employee benefit and other expenses did see an annual decrease, two line items caused JSW Steel's Q3 FY25 Ebitda to see a 22% downtick.
Inventory changes of Rs 258 crore versus a Rs 4,135 crore reversal last year.
7% annual increase in power and fuel costs.
What Impacted Net Profits?
Other comprehensive loss of Rs 1,391 crore.
Exception item of Rs 103 crore.
Higher deferred taxes.
Q3 Production
As reported on Jan. 10, JSW Steel's consolidated production increased 2% year-on-year to 7.03 million tonne, whereas its India operations production rose 3% annually to 6.82 million tonne in Q3 FY25.
Capacity utilisation at the Indian operations stood at 91%. The company notes that production and capacity utilisation during the quarter was impacted due to maintenance activity at one blast furnaces at Dolvi from Oct-Nov first week of 2024.
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Debt
JSW Steel's net debt did see a 2.3% sequential decrease to Rs 80,921 crore in Q3 FY25. While the company did take loans to the tune of Rs 3,687 crore during the quarter, it did make repayments worth Rs 3,645 crore. The company's net debt to equity ratio now stands at 1 times versus 1.01 times last quarter.
Capacity
JSW Steel's current capacity stands at 35.7 million tonnes per annum. It plans to grow the capacity to 43.5 MTPA by September 2027. The company also targets 51.5 MTPA capacity by FY31.
The company's 5 MTPA hot strip mill project is expected to ramp-up in the fourth quarter, and it will also commission its 30 MTPA slurry pipeline in Odisha in FY27.
