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View Promises →JSW Steel Limited — Q3 FY25
JSW Steel reported a strong operational quarter with highest-ever consolidated crude steel production of 7.03 million tons and record domestic sales of 6.71 million tons, up 12% YoY.
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JSW Steel reported a strong operational quarter with highest-ever consolidated crude steel production of 7.03 million tons and record domestic sales of 6.71 million tons, up 12% YoY. Revenue from operations stood at ₹41,378 crore, with EBITDA of ₹5,579 crore (margin 13.5%) and PAT of ₹719 crore. The performance was driven by ramp-up of BPSL expansion and JVML facility, cost benefits from lower coking coal prices, and a focus on value-added products (60% of sales). Management expects Q4 to benefit from lower raw material costs, improved product mix, and government CapEx recovery. However, steel price corrections and elevated imports remain headwinds. A key risk is the potential delay in trade safeguard measures, which could keep import pressure high.
जेएसडब्ल्यू स्टील ने मजबूत तिमाही नतीजे दिए। कंपनी ने सबसे ज्यादा 7.03 मिलियन टन स्टील बनाया और घरेलू बिक्री 6.71 मिलियन टन रही, जो पिछले साल से 12% ज्यादा है। कमाई 41,378 करोड़ रुपये रही, जिसमें से परिचालन मुनाफा (EBITDA) 5,579 करोड़ रुपये (13.5% मार्जिन) और शुद्ध मुनाफा (PAT) 719 करोड़ रुपये रहा। यह सफलता BPSL और JVML संयंत्रों के विस्तार, कोकिंग कोल की कम कीमतों और 60% बिक्री वाले उच्च गुणवत्ता वाले उत्पादों पर ध्यान देने से मिली। प्रबंधन को उम्मीद है कि चौथी तिमाही में कच्चे माल की कम लागत, बेहतर उत्पाद मिश्रण और सरकारी खर्च बढ़ने से फायदा होगा। लेकिन स्टील की कीमतों में गिरावट और बढ़ता आयात चुनौती बना हुआ है। अगर सरकार आयात पर रोक लगाने के उपायों में देरी करती है, तो आयात का दबाव बना रह सकता है।
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Steel import pressure and trade measures delay
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Crude Steel Production
7.03M tons
+2% YoY
Highest-ever quarterly consolidated crude steel production, aided by BPSL ramp-up and JVML commissioning.
Domestic Steel Sales
6.71M tons
+12% YoY
Record quarterly domestic sales, with value-added and special products comprising 60% of total.
EBITDA per Ton
₹8,316
EBITDA per ton stood at ₹8,316, reflecting cost optimization despite lower realizations.
JSW One Platform GMV Run Rate
₹14,000 Cr
+2.7x vs FY24
Annualized GMV run rate crossed ₹14,000 crore, up 2.7x from FY24 and 10x from FY23.
What Changed vs Last Quarter
NEW
Q4 iron ore cost benefit of ~₹350/ton from NMDC price cut
NMDC's iron ore price reduction of about ₹350 per ton in January will reflect in consumption costs in February and March.
NEW
FY26 iron ore production target of ~28M tons from captive mines
Management targets about 15 million tons from Karnataka, 12 million tons from Odisha, and 1.3-1.4 million tons from Goa in FY26.
UPDATED
FY25 volume guidance at ~98% of 28.4M tons production target
Management expects to achieve around 98% of the guided production volume of 28.4 million tons for FY25, due to delayed startup of JVML facility.
UPDATED
Q4 coking coal cost reduction of $10-$15 per ton
Coking coal costs are expected to be lower by about $10-$15 per ton in Q4, aiding margins.
DROPPED
FY25 CapEx revised down to INR 16,000-17,000 crore
Reduction due to slurry pipeline transfer to JSW Infrastructure and BF3 shutdown deferral to FY26.
DROPPED
Net debt to EBITDA target of 2.5-3x in medium term
CFO committed to reducing leverage, with absolute debt expected to taper in H2 from working capital release.
NEW RISK
Steel import pressure and trade measures delay
India remained a net steel importer with net imports doubling to 3.6 million tons in 9M FY25. Trade safeguard measures are awaited; any delay could keep imports elevated and pressure domestic prices.
NEW RISK
Karnataka mining taxation impact
Proposed state-level taxes on mineral rights and land could increase costs. Management expressed concern about sustainability but expects rational outcome.
NEW RISK
Overseas operations drag on cash flows
US operations reported EBITDA loss of $17.9 million, and Italian operations saw lower EBITDA. These entities are a small drag on cash flows, though improvement is expected in Q4.
RISK GONE
Elevated steel imports from China
India's Q2 imports jumped 43% YoY to 3.18M tons, driven by Chinese exports, pressuring domestic prices and market share.
RISK GONE
US operations profitability deterioration
Ohio and Texas combined posted an EBITDA loss of $11 million due to price drops and unplanned maintenance shutdown, with uncertain recovery timing.
RISK GONE
Debt increase and working capital strain
Net debt rose ~INR 4,900 crore to ~INR 85,000 crore due to CapEx, acquisition, and working capital build; CFO expects release of INR 1,500-2,000 crore in H2.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY24, Q2 FY25, Q3 FY24, Q4 FY24
Reduction due to slurry pipeline transfer to JSW Infrastructure and BF3 shutdown deferral to FY26.
Mentioned in Q1 FY25, Q2 FY25, Q4 FY24
India's Q2 imports jumped 43% YoY to 3.18M tons, driven by Chinese exports, pressuring domestic prices and market share.
Mentioned in Q1 FY24, Q2 FY25
Net debt rose ~INR 4,900 crore to ~INR 85,000 crore due to CapEx, acquisition, and working capital build; CFO expects release of INR 1,500-2,000 crore in H2.
Mentioned in Q1 FY24, Q2 FY24
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.
Mentioned in Q1 FY25, Q4 FY24
Land clearance issues with government; approvals expected during the year but timeline uncertain.
Fast read
Guidance and risk preview
Management expects to achieve around 98% of the guided production volume of 28.4 million tons for FY25, due to delayed startup of JVML facility.
India remained a net steel importer with net imports doubling to 3.6 million tons in 9M FY25.
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