Latest news with #BhushanPower
Mint
26-05-2025
- Business
- Mint
JSW Steel eyes a resurgence in overseas operations, lower costs in India in FY26
Mumbai: JSW Steel is eyeing a resurgence in its overseas operations in FY26, as capacity expansion, better realizations and the imposition of import tariffs aids its US subsidiaries while higher volumes and a better product mix lift the prospects of its Italian unit, a top company official said. Also Read | JSW Steel: Compensation from creditors enough to cover for Bhushan Power assets While relatively small in scale compared to its sprawling domestic steelmaking empire, the cash hemorrhage at the company's overseas units in the US and Italy had been eating into its consolidated margins. 'We will see better margins in the US. The operations in Ohio are stable. With better volumes and better pricing environment, we see the US contributing positively to the overall operations," JSW Steel's joint managing director Jayant Acharya said in an interview. The company runs a 1.5 million tonnes per annum (MTPA) electric-arc-furnace-based steel manufacturing unit in Ohio and a 1.75-MTPA plate and pipe production mill in Texas. Also Read | Bhushan Steel assets: ED back in play with Supreme Court scrapping JSW Steel's resolution plan In Italy, the company runs a 0.32 MTPA rail manufacturing unit, which it considers to be a strategically important asset. The facility is undergoing an expansion in capacity to 0.6 MTPA, with an ability to produce 120 metre-long rails compared to the 108 metres it produces currently. 'In this year we feel the Italian operations, which have been positive Ebitda (earnings before interest, taxes, depreciation and amortization), will contribute positively to our overall operations," Acharya said. Also Read | Prolonged uncertainty awaits JSW Steel after court quashes BPSL resolution plan The Italian operations reported a loss in the fourth fiscal quarter due to a rail congestion in the country that not only affected the supply of products from its mill but also delayed orders from the country's railways. This will reverse in the new fiscal, Acharya said. He dismissed any talks of the company evaluating any divestment from its international units. 'We are not thinking of divesting the assets in Italy, for sure. And in the US also now, as you see, the operating environment has improved with the tariffs in place. Our expansions in Baytown (Texas) are getting completed. So at this point of time, I think we have a possibility of taking advantage of the operating environment," Acharya said. Expansion in India to bring down costs JSW Steel is eyeing a reduction in costs in Indian in FY26 to shore up its margins amid tepid steel prices. The company will be operationalizing three iron ore mines in Karnataka during the year which will bring down its raw material costs. Similarly, it will be operationalizing one iron ore mine in Goa. Meanwhile, its flagship mill in Vijaynagar in Karnataka will be completing its 5 MTPA capacity expansion, adding not just volumes but also bringing down costs. The newer assets will be significantly more efficient and produce steel at a lower cost than all of the company's other assets in India, Acharya said. At Vijaynagar, the company will be shutting one blast furnace in FY26 for maintenance and to increase its capacity by 1.5 MTPA. This will again help in lowering costs, he said. 'Larger blast furnaces are designed to deliver better fuel efficiency and lower the power costs. On top of that, we will have also the fixed costs being lowered," Acharya said. The fixed costs will be lowered as they are spread over a higher volume and thus more revenue. Procurement of renewable energy will also bring down the company's energy cost, Acharya said. The company is looking to procure 1 gigawatt of renewable energy from fellow group company JSW Energy, of which 65-70% is already being supplied and the remainder will start in the coming two months, he said.
Mint
23-05-2025
- Business
- Mint
JSW Steel: Compensation from creditors enough to cover for Bhushan Power assets
Mumbai: JSW Steel Ltd expects to be compensated adequately if Bhushan Power & Steel Ltd (BPSL) goes into liquidation after the Supreme Court scrapped its resolution plan for the bankrupt company. The steelmaker said its agreement with the erstwhile creditors of Bhushan Power entitled it to compensation covering the value of the assets on its balance sheet in case of BPSL's liquidation. JSW Steel acquired Bhushan Power through the bankruptcy court in March 2021. JSW Steel held net assets worth ₹ 14,091 crore related to BPSL on its consolidated balance sheet as of 31 March. The company also said it had strong grounds for availing legal recourse after the Supreme Court on 2 May rejected its resolution plan and acquisition of BPSL. JSW Steel's consolidated earnings for 2024-25, which were disclosed on Friday, included the financials of Bhushan Power. 'We have implemented the resolution plan of BPSL in compliance with the law and taken steps to successfully revive the company to its present state today,' JSW Steel's joint managing director Jayant Acharya told analysts during a post-earnings call on Friday evening. 'We along with our legal advisors have analyzed the matter and we believe we have strong grounds to avail all legal remedies,' he said. Acharya declined to answer further questions related to BPSL as the matter is sub-judice. BPSL's Odisha-based plant has an annual integrated steel production capacity of 4.5 million tonnes, while JSW Steel's total domestic capacity is 34.2 million tonnes, the largest for any steelmaker in India. 'The management during the Q4FY25 analyst call failed to give any definitive answers or future roadmap on the recent SC verdict,' said Parthiv Jhonsa, lead analyst for metal and mining at Anand Rathi Financial Services. 'Though the downside for the company is protected, no clarity was provided on the recovery of the original amount from creditors.' JSW Steel reported a consolidated profit of ₹ 1,501 crore for the fourth quarter of FY25, up 14% compared with its profit in the corresponding quarter of FY24. Its consolidated revenue, however, fell 3% from a year earlier to ₹ 44,819 crore in the March quarter due to lower steel prices. Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of core performance, grew 4% to ₹ 6,378 crore in the fourth quarter. EBITDA margin improved by a percentage point to 14.23% as JSW Steel's input costs and expenses narrowed. Prices of key raw materials such as coking coal and iron ore were cheaper due to tepid global demand for these resources in the January-March period. 'All the subsidiaries did well during the quarter, except perhaps Italy, due to some bottlenecks there. The losses in the US have reduced. So there was an improvement across the spectrum,' said Jhonsa of Anand Rathi. For the ongoing first quarter of FY26, JSW Steel said its realizations continued to improve with coking coal costs falling further. 'Steel prices were low in December but slowly improved starting February. The trend continued in March and April, and we will see the impact of that in Q1,' Acharya said during the analyst call. The steelmaker said it expects to produce 30.5 million tonnes of steel in FY26, up from 27.79 million tonnes in FY25, which was its highest-ever. Even so, JSW Steel's profit in 2024-25 declined 61% to ₹ 3,491 crore, while revenue fell 4% to ₹ 1.69 trillion. The company declared a dividend of ₹ 2.8 per share. JSW Steel shares gained 0.29% to close at ₹ 1,008.5 the BSE on Friday. Benchmark Sensex ended the session 0.95% in the green.
Time of India
21-05-2025
- Business
- Time of India
JSW Steel faces tax benefit reversal after Supreme Court scraps Bhushan Power takeover
JSW Steel is facing a possible reversal of tax benefits availed as part of the acquisition of Bhushan Power and Steel ( BPSL ), following its 2020 takeover of the bankrupt company being scrapped by the Supreme Court , said people aware of the matter. Acquisitions under the Insolvency and Bankruptcy Code (IBC) allow offsetting of past losses of the insolvent company against profits. Now, the Income Tax Department is planning to reopen Bhushan Power's assessment, said people close to the matter. 'Tax benefit is a very big consideration under IBC,' said Girish Vanvari, founder of advisory firm Transaction Square . Losses of ₹7,000 crore 'Several promoters have acquired companies for the purpose of availing of it,' said Vanvari. JSW Steel had informed the Chief Commissioner at the time of the acquisition — undertaken by way of a ₹19,350-crore resolution plan — that it would be availing of the benefit, said the people cited. BPSL's losses amounted to around ₹7,000 crore, they said. Soon after the takeover, BPSL turned profitable. It offset earlier losses and unabsorbed depreciation over FY22, FY23 and FY24, according to account statements, when it posted profits of ₹4,258 crore, ₹160 crore and ₹674 crore, respectively. But on May 2, the Supreme Court rejected JSW Steel's resolution plan and ordered BPSL's liquidation, citing lack of compliance and other issues. According to IBC norms, the corporate debtor — in this case, Bhushan Power — can avail of tax benefits if there is a change of shareholding pursuant to a resolution plan, said Vanvari of Transaction Square. 'As an extension of that benefit, losses of the corporate debtor can be carried forward and set off against future tax liabilities,' he said. Bhushan Power became a subsidiary of JSW Steel in FY22. While the tax benefits were claimed by the former, JSW benefitted indirectly as it held 83% in the company. Notably, BPSL also incurred an expenditure of ₹3,640 crore to increase steel-making capacity at its Odisha facility after the takeover, its financial statements show.
Time of India
21-05-2025
- Business
- Time of India
With No BPSL Deal, Taxman may Rewind Sops to JSW Steel
JSW Steel is facing a possible reversal of tax benefits availed as part of the acquisition of Bhushan Power and Steel (BPSL), following its 2020 takeover of the bankrupt company being scrapped by the Supreme Court , said people aware of the matter. Acquisitions under the Insolvency and Bankruptcy Code (IBC) allow offsetting of past losses of the insolvent company against profits. Now, the Income Tax Department is planning to reopen Bhushan Power's assessment, said people close to the matter. 'Tax benefit is a very big consideration under IBC,' said Girish Vanvari, founder of advisory firm Transaction Square. 'Several promoters have acquired companies for the purpose of availing of it,' said Vanvari. JSW Steel had informed the Chief Commissioner at the time of the acquisition — undertaken by way of a Rs 19,350-crore resolution plan — that it would be availing of the benefit, said the people cited. BPSL's losses amounted to around Rs 7,000 crore, they said. Soon after the takeover, BPSL turned profitable. It offset earlier losses and unabsorbed depreciation over FY22, FY23 and FY24, according to account statements, when it posted profits of Rs 4,258 crore, Rs 160 crore and Rs 674 crore, respectively. But on May 2, the Supreme Court rejected JSW Steel's resolution plan and ordered BPSL's liquidation, citing lack of compliance and other issues. According to IBC norms, the corporate debtor — in this case, Bhushan Power — can avail of tax benefits if there is a change of shareholding pursuant to a resolution plan, said Vanvari of Transaction Square. 'As an extension of that benefit, losses of the corporate debtor can be carried forward and set off against future tax liabilities,' he said. Bhushan Power became a subsidiary of JSW Steel in FY22. While the tax benefits were claimed by the former, JSW benefitted indirectly as it held 83% in the company. Notably, BPSL also incurred an expenditure of Rs 3,640 crore to increase steel-making capacity at its Odisha facility after the takeover, its financial statements show.
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Business Standard
15-05-2025
- Politics
- Business Standard
Best of BS Opinion: Tracking shifts in judiciary, trade, and policy
On some winter mornings, the fog hangs low, heavy, and indifferent, so thick it swallows outlines and makes familiar paths feel eerily new. You know the road is there, the gate, the turn, the waiting tea vendor, but they disappear into the blur. So, what do you do? You light a lantern. Not to banish the fog, but to move through it. Slowly. Deliberately. That's what today's stories feel like, each one a small but stubborn light in the haze of complexity, delay, or transition. Let's dive in. Take the elevation of Justice Bhushan Ramkrishna Gavai as the 52nd Chief Justice of India. He becomes only the second Dalit to reach this post, a milestone of representation in a system often criticised for its opacity and imbalance, notes our first editorial. His six-month term probably won't clear the backlog of over 80,000 cases or instantly fix the judiciary's trust deficit but his vow to steer clear of post-retirement rewards is a moral lantern, lighting up a path where judges stand apart, not beholden. In climate policy too, the fog is thick. The government's plan to add a 'sustainable transport' mission to its climate change agenda sounds promising, highlights our second editorial. But scratch the surface, and you're lost in contradictions, charging stations powered by coal, EV adoption stalling, and road freight refusing to yield. Still, setting stricter norms like Bharat VII and planning millions of clean-energy charging stations signal direction. Not a revolution, but something nonetheless. Meanwhile, M S Sahoo's column dissects the Bhushan Power case, where a long-settled resolution was undone six years later, without consequence to those responsible. It's not just a legal curiosity, it exposes a system where decisions are made in fog and reversed with no warning. His call for finality, speed, and economic coherence in the insolvency process is not a cry into the void, but a call for justice to be visible and reliable. In a shifting world economy, Amrit Amirapu and Arvind Subramanian argue that even as old models of industrial growth fade, manufacturing still offers the clearest light for the world's poorest. It's not a floodlight, but a torch — scalable, inclusive, imperfect that shows enough of the road ahead to keep moving. And in his review of India-Africa: Building Synergies In Peace, Security And Development by Ruchita Beri, Dammu Ravi reflects on India's evolving partnership with Africa. The continent is no longer just a recipient of help, it's a force finding its own way. India's role? Not to lead with certainty, but to walk alongside, lighting lanterns of health, education, energy, and trade across a vast and often invisible terrain.
