SEO-Optimized Title: JSW Steel Q3 FY2025 Results: 70% Profit Decline Meets Estimates Amid Record Production
JSW Steel Q3 Performance: Profit Slump Offsets Production Milestones
Key Financial Highlights
JSW Steel reported a 70% year-on-year decline in consolidated net profit to ₹717 crore for Q3 FY2025, down from ₹2,415 crore in Q3 FY2024. Revenue from operations fell 1% YoY to ₹41,378 crore, driven by weaker steel prices despite record production volumes :cite[8]:cite[5].
Operational Achievements
- Record Production: Consolidated crude steel output rose 2% YoY to 7.03 million tonnes, the highest in company history :cite[5].
- Sales Growth: Sales volumes surged 12% YoY to 6.71 million tonnes, marking a quarterly record :cite[5].
- Capacity Utilization: Indian plants operated at 91% capacity despite maintenance disruptions at the Dolvi facility :cite[5].
Factors Behind Profit Decline
- Price Pressures: Domestic steel realizations dropped 10% YoY due to cheap Chinese imports :cite[8].
- Rising Costs: Power/fuel expenses increased 7% YoY, while deferred taxes added ₹103 crore in exceptional losses :cite[8].
- EBITDA Contraction: Operating EBITDA fell 22% YoY to ₹5,579 crore, with margins shrinking to 13.5% :cite[8].
Strategic Adjustments
Debt & Capex Management
Net debt decreased 2.3% sequentially to ₹80,921 crore. The company reduced FY25 capex guidance by 20% to ₹16,000 crore to prioritize liquidity :cite[5].
Expansion Projects
JSW Steel’s 5 MTPA integrated project in Vijayanagar is progressing, with partial commissioning of steel melt shop equipment. Full operational capacity is expected by Q4 FY2025 :cite[5].
Market Response & Outlook
- Stock Performance: Shares closed 0.22% higher at ₹931.95 post-results, reflecting cautious optimism :cite[5].
- Q4 Projections: Analysts anticipate recovery driven by government infrastructure spending and auto sector demand :cite[8].
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment