What Caused JSW Steel's Net Profit to Plummet Over 61% to Rs 3,491 Crore in FY25?
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Synopsis
JSW Steel has reported a staggering decline in net profits for FY25, highlighting challenges in the steel sector. Despite a modest increase in quarterly earnings, factors like weak demand and competition from cheaper imports have significantly impacted profitability. Discover the details of this financial downturn and the company's strategic responses.
Key Takeaways
- JSW Steel's net profit fell by 61% to Rs 3,491 crore.
- Quarterly profit increased by 13.54% to Rs 1,501 crore.
- Revenue from operations declined by 3% YoY.
- Total expenses rose slightly by 0.36% in FY25.
- EBITDA margin improved to 14.23%.
Mumbai, May 23 (NationPress) JSW Steel, a prominent player in the steel industry and part of the JSW Group, revealed on Friday that its net profit plummeted to Rs 3,491 crore for the complete fiscal year (FY25), marking a staggering decline of over 61 percent from Rs 8,973 crore the previous fiscal year (FY24).
This notable downturn occurred despite a modest rise in earnings during the concluding quarter of the year.
For the quarter ending March 31 (Q4 FY25), JSW Steel recorded a net profit of Rs 1,501 crore, reflecting an increase of approximately 13.54 percent from Rs 1,322 crore in the corresponding quarter of last year (Q4 FY24), as disclosed in its stock exchange filing.
However, revenue from operations saw a decline of around 3 percent year-on-year (YoY), totaling Rs 44,819 crore, as the steel sector grappled with sluggish demand and competition from lower-priced imports, particularly from China and Southeast Asia.
For the entire year, JSW Steel's total operational revenue amounted to Rs 1,68,824 crore, down 3.53 percent from Rs 1,75,006 crore in FY24.
Simultaneously, total expenses experienced a slight uptick of 0.36 percent, reaching Rs 1,63,641 crore in FY25.
The company successfully enhanced its operational performance, with operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) climbing to Rs 6,378 crore in Q4 FY25, compared to Rs 6,124 crore a year earlier.
The EBITDA margin also improved to 14.23 percent, rising from 13.2 percent the previous year, aided by reduced input costs.
In light of these results, the company’s board declared a final dividend of Rs 2.8 per equity share for the fiscal year.
Additionally, it has sanctioned a plan to secure up to Rs 14,000 crore through a combination of non-convertible debentures and equity or convertible securities to bolster its long-term growth initiatives.
The results were announced after market hours on May 23. Earlier that day, shares of JSW Steel closed slightly higher at Rs 1,007.90 on the National Stock Exchange (NSE).
Point of View
It's crucial to recognize the broader implications of JSW Steel's recent financial results. The drastic fall in net profit underscores the ongoing challenges faced by the steel industry, particularly in a global market increasingly influenced by foreign imports. It will be vital for the company to adapt its strategies to navigate these challenges effectively while maintaining operational efficiency.
NationPress
27/07/2025
Frequently Asked Questions
What contributed to JSW Steel's profit decline?
JSW Steel's profit decline was primarily due to weak demand in the steel sector and pressure from cheaper imports, particularly from China and Southeast Asia.
How did the quarterly earnings perform?
For Q4 FY25, JSW Steel's net profit increased by approximately 13.54% to Rs 1,501 crore compared to the same quarter last year.
What is the company's plan to support growth?
JSW Steel plans to raise up to Rs 14,000 crore through a mix of non-convertible debentures and equity or convertible securities to support long-term growth.
