JSW Steel net down 65% at ₹1,322 crore on lower realisation, higher cost

Sajjan Jindal-led JSW Steel said net profit in the March quarter dropped 65 per cent to ₹1,322 crore, against ₹3,741 crore logged in the same period last year, due to lower realisation and higher cost.

Income dipped two per cent to ₹46,511 crore (₹47,427 crore). The board has approved a dividend of ₹7.30 per equity share. The company plans to raise ₹14,000 crore through issuance of equity and debentures to qualified institutional buyers.

Sales during the quarter under review was up 3 per cent at 6.73 mt (6.53 mt). EBITDA was down 23 per cent at ₹6,124 crore (₹7,939 crore) as realisations were lower by six per cent due to weak steel prices.

The company’s net debt was down at ₹73,916 crore against ₹79,221 crore in the December quarter. It plans to invest ₹20,000 crore in ongoing projects in this fiscal. It also plans to increase the capacity of its Dolvi plant by another 5 mtpa to 15 mtpa by 2027.

The company expects India will become a net steel importer in this fiscal amid large-scale imports from China to remain a key challenge for the domestic steel industry.

• Also read: JSW Steel crude steel output remains almost flat at 21.21 lakh tonnes in April

JSW Steel’s subsidiary, Bhushan Power & Steel, reported a 31 per cent quarter-on-quarter drop in EBITDA at ₹536 crore due to lower realisation and high coking coal costs. It registered a net profit of ₹6 crore.

JSW Steel has guided steel production of 28.40 mt and sales of 27 mt for FY’25.

Acquires mine in Mozambique

The company has acquired Minas de Revuboe, which owns pre-developed hard coking coal mines in Mozambique, for $74 million (about ₹606 crore). The mine has reserves of 800 million tonne. The deal, which was executed through a wholly-owned subsidiary, JSW Natural Resources, is expected to be closed by January 2025.

Incidentally, the company has moved the Supreme Court against the Goa Green Cess of 0.5 per cent on the sale value of various kinds of coal and coke imported at Mormugao Port.

The Supreme Court, through an interim order, directed the company to deposit 50 per cent of the cess demanded by the Goa government before taking up the matter for hearing. JSW Steel has deposited the amount with the Goa government and is waiting for a hearing by the Apex Court.

Shares of the company were up two per cent at ₹907 on Friday.

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