JSW Steel FY24 Annual Earnings Summary
4 quarters covered · ₹1,75,006 Cr revenue · ₹8,973 Cr PAT · 12.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Risks flagged during the year
Higher Chinese exports due to weak domestic demand could pressure global steel prices and impact JSW's export realizations.
Q2 FY24 · highCoking coal prices have increased sharply, with Q3 costs expected to be about $30/ton higher, partly flowing into Q4 if prices persist, pressuring margins.
Q3 FY24 · highCoking coal and iron ore costs are rising; Q4 margins expected to be impacted despite volume recovery.
Q4 FY24 · highIndia's steel imports grew 37% YoY in FY24, with Q4 imports up 30% YoY, posing a risk to domestic pricing and market share.
Q1 FY24 · mediumWorking capital investment of ₹7,800 crore in Q1 increased net debt to ₹67,000 crore; reversal depends on inventory liquidation.
Q1 FY24 · mediumGlobal headwinds may impact US operations, especially Ohio, though Baytown is expected to perform well.
Q1 FY24 · mediumIron ore prices in India have not corrected in line with steel prices, potentially squeezing margins if correction is delayed.
Q2 FY24 · mediumImports into India rose 23% YoY in H1, with some low-priced imports from trade flows potentially pressuring domestic prices and market share.
Q2 FY24 · mediumOhio operations continue to face weaker market conditions, impacting performance, though expected to improve slightly in Q3.
Q3 FY24 · mediumImports rose 16% in Q3; management flagged concern but expects parity to limit imports in Q4.
Q3 FY24 · mediumAnalyst raised; management acknowledged impact on container exports but reorienting to break bulk.
Q4 FY24 · mediumThe acquired mine is pre-development; past overseas mining ventures by Indian companies have faced delays and cost overruns.
What changed through the year
Q1 FY24 · FY24 production guidance of 26.34 million tons
Management confirmed the annual production target of 26.34 million tons, with Q1 achieving 100% of the quarterly target.
Q1 FY24 · Q2 coking coal cost benefit of $45-50/ton
Coking coal costs are expected to decline by $45-50 per ton in Q2, providing a significant cost offset.
Q1 FY24 · Capacity expansion to 37 million tons by FY25
Brownfield expansions at Vijayanagar, BPSL, and JSW Steel Coated will increase India capacity to 37 million tons by FY25.
Q1 FY24 · Medium-term capacity target of 50 million tons
The company aims to reach 50 million tons capacity by 2030-31 through brownfield and modular greenfield expansions.
Q2 FY24 · Production and sales guidance on track for FY24
Management confirmed they are on track to achieve their production and sales guidance for FY24, with better volumes in H2 driven by BPSL capacity expansion and improved utilization.
Q2 FY24 · Capacity expansion to 37 million tons by FY25
JSW Steel is adding 8.5 million tons of capacity to reach 37 million tons by FY25, with brownfield expansions at Vizag (5 million tons) and BPSL (to 5 million tons) on track.
Q2 FY24 · CapEx of INR 52,000 crore until FY26
The company plans a CapEx of INR 52,000 crore until FY26 for growth to 37 million tons and downstream projects, funded mostly through internal accruals.
Q2 FY24 · Coking coal cost expected to moderate
Management expects current elevated coking coal prices to moderate, with Q3 costs likely about $30/ton higher than Q2 due to blending benefits, and further moderation thereafter.
Q3 FY24 · FY24 volume guidance reiterated: 26.34M tons production, 25M tons sales
Consolidated production and sales targets for FY24 remain unchanged despite Q3 sales dip.
Q3 FY24 · Coking coal cost expected to increase $20-$25/ton in Q4
Landed cost expected to rise from $252/ton in Q3 due to elevated global prices.
Q3 FY24 · CapEx spend of ~INR 18,000 crore in FY24
Lower than earlier estimate of INR 20,000 crore due to timing of payments spilling into Q1 FY25.
Q3 FY24 · Net zero by 2050 commitment
Long-term target with interim goal of 1.95 tCO2/tcs by 2030, using renewables, efficiency, and circularity.
Q4 FY24 · FY25 production guidance of 28.4 million tons
Consolidated crude steel production target for FY25, with sales guidance of 27 million tons, reflecting ramp-up of new capacities.
Q4 FY24 · Consolidated CapEx of INR 20,000 crore in FY25
Capital expenditure planned for the fiscal year, funded largely through internal accruals, with net debt expected to remain flattish.
Q4 FY24 · Coking coal cost to decline $22-27/ton in Q1 FY25
Expectation of lower input costs due to recent fall in coking coal prices, supporting margin improvement.
Q4 FY24 · Return to normative EBITDA per ton in FY25
Management expects EBITDA per ton to improve from Q4 levels, aided by cost savings, stable prices, and lower coking coal costs.