JSW Steel's Q3 Net Profit Drops 70% to Rs 717 Crore
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Synopsis
JSW Steel's net profit plummeted 70% year-on-year to Rs 717 crore for Q3, down from Rs 2,450 crore, amid challenges from imports and pricing pressures, despite record crude steel production.
Key Takeaways
- JSW Steel's net profit fell by 70% to Rs 717 crore.
- Revenue from operations decreased by over 1% to Rs 41,378 crore.
- Record crude steel production reached 7.03 million tonnes.
- Net debt-to-equity ratio remains stable at 1.00x.
- India is still a net importer of steel.
Mumbai, Jan 24 (NationPress) JSW Steel, under the leadership of Sajjan Jindal, announced a significant 70% decline in its net profit, amounting to Rs 717 crore for the October-December quarter of this financial year. This is a stark contrast to the Rs 2,450 crore reported during the same period last year.
The company’s revenue from operations also witnessed a slight dip of over 1% year-on-year, totaling Rs 41,378 crore for the third quarter.
JSW Steel achieved record quarterly crude steel production, reaching 7.03 million tonnes during this timeframe, while saleable steel sales stood at 6.71 million tonnes.
According to the quarterly filing, the earnings before interest, tax, depreciation, and amortization (EBITDA) for this quarter was Rs 5,579 crore.
The company’s financial standing remains solid, with a net debt-to-equity ratio of 1.00x and a net debt-to-EBITDA ratio of 3.57 times.
The drop in steel prices, driven by an influx of inexpensive imports from nations like China and Vietnam, has adversely affected the company’s bottom line.
Despite a 10.8% QoQ decline in steel imports to 2.83 million tonnes, imports rose by 16.7% year-on-year to 8.21 million tonnes for the first nine months of FY25. In contrast, exports surged 44% quarter-on-quarter to 1.82 million tonnes, while for the same nine-month period, exports fell by 16.5% to 4.58 million tonnes.
Thus, India continued to be a net importer of steel in both Q3 and the first nine months of FY25. To combat the rising steel imports, the Director General of Trade Remedies (DGTR) has launched ongoing trade investigations, including safeguard and anti-dumping probes.
In Q3 FY25, India’s crude steel production grew by 3.5% year-on-year to 37.38 million tonnes, with steel consumption rising by 6.8% year-on-year to 38.46 million tonnes, showing a slowdown compared to the 13.6% growth observed in the first half of the year.
A rebound in government capital expenditure is anticipated to support growth in the steel sector in the upcoming quarter.
