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JSW Steel expansion plan on track despite SC order on BPSL: Jayant Acharya
JSW Steel expansion plan on track despite SC order on BPSL: Jayant Acharya

News18

time2 days ago

  • Business
  • News18

JSW Steel expansion plan on track despite SC order on BPSL: Jayant Acharya

New Delhi, Jul 18 (PTI) JSW Group on Friday said its expansion plan will not be impacted by the Supreme Court order to set aside the acquisition of Bhushan Steel and Power Ltd (BSPL) through the insolvency process. JSW Steel Joint MD and CEO Jayant Acharya, in an earnings call, said that BPSL was not part of the brownfield expansion that the steel company took into account while setting the 50 million tonnes capacity target by 2030-31. 'In our 50 MT tonne outlook (expansion) that we have given up to 2030-31, BPSL was not part of the brownfield expansion that which we have taken into account. So therefore, it will not impact our target which we have given," Acharya said, in an earnings call, said while replying to a question if the acquisition of BPSL asset going into legalities will affect JSW Steel's expansion plans. He also said that the company has filed a review in Supreme Court for BPSL case and believes there is a strong ground for the same. 'For that 0.5 MnT (expansion) we will take a view. That is the only one (expansion) basically to be decided (after the SC decision on BPSL)," Acharya said. Located in Odisha's Jharsuguda, BPSL recorded a crude steel production capacity of 3.38 million tonnes (MT) in FY25. JSW Steel had envisaged ramping up BPSL's capacity to 5 MT, eyeing to benefit from the higher sales and realisations from value-added products such as colour-coated, galvanised sheets, pipes and wires. In 2019, JSW Steel had won the bid to acquire Bhushan Power & Steel under the IBC for a little less than Rs 20,000 crore. BPSL has an operating capacity of 4.5 MT as of now. JSW Steel said the Committee of Creditors and Resolution Professional have also filed separate review petitions. The review petitions will be listed in the Supreme Court in due course. The Supreme Court has directed status quo in respect of proceedings before NCLT for implementation of the SC judgment until the review petition is decided. 'We, along with our legal advisors, have analysed the matter and are of the view that we have strong grounds to pursue the Review Petition," he said. PTI ABI ABI MR MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 18, 2025, 22:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

India's JSW Steel says low priced imports a concern after profit beats estimates
India's JSW Steel says low priced imports a concern after profit beats estimates

Business Recorder

time2 days ago

  • Business
  • Business Recorder

India's JSW Steel says low priced imports a concern after profit beats estimates

India's top steelmaker JSW Steel flagged concerns of cheaper steel imports on Friday after the company beat first-quarter profit estimates. Indian steelmakers have been under pressure from a surge in low-cost shipments primarily from China, prompting production cuts and job concerns across the industry. The government imposed a temporary 12% import tariff, locally known as safeguard duty in April to curb cheap imports. Although domestic steel prices improved quarter-on-quarter, they remained below year-ago levels. 'There is a case for the government to consider the safeguard duty favorably, in terms of extension as well as in terms of the overall duty percentage,' Jayant Acharya, chief executive of JSW Steel, said. India's JSW Steel faces challenges importing coking coal from Mongolia Given that many countries are putting trade barriers, lower-priced imports are coming to India, which is impacting sentiment, Acharya said. He added that some low-priced imports from Russia also require monitoring. Earlier in the day, JSW Steel reported a consolidated net profit of 21.84 billion rupees ($253.52 million) for the three months ended June 30, exceeding analysts' average estimate of 20.39 billion rupees, supported by easing raw material costs. Revenue from operations largely remained flat at 431.47 billion rupees, as weaker year-on-year steel prices offset a 9% rise in sales volumes. JSW's total expenses decreased by 3.3% to 403.25 billion rupees, primarily due to a similar decline in the cost of materials consumed. JSW Steel's shares closed flat ahead of the quarterly results.

JSW Steel expansion plan on track despite SC order on BPSL: Jayant Acharya
JSW Steel expansion plan on track despite SC order on BPSL: Jayant Acharya

Business Standard

time2 days ago

  • Business
  • Business Standard

JSW Steel expansion plan on track despite SC order on BPSL: Jayant Acharya

JSW Group on Friday said its expansion plan will not be impacted by the Supreme Court order to set aside the acquisition of Bhushan Steel and Power Ltd (BSPL) through the insolvency process. JSW Steel Joint MD and CEO Jayant Acharya, in an earnings call, said that BPSL was not part of the brownfield expansion that the steel company took into account while setting the 50 million tonnes capacity target by 2030-31. "In our 50 MT tonne outlook (expansion) that we have given up to 2030-31, BPSL was not part of the brownfield expansion that which we have taken into account. So therefore, it will not impact our target which we have given," Acharya said, in an earnings call, said while replying to a question if the acquisition of BPSL asset going into legalities will affect JSW Steel's expansion plans. He also said that the company has filed a review in Supreme Court for BPSL case and believes there is a strong ground for the same. "For that 0.5 MnT (expansion) we will take a view. That is the only one (expansion) basically to be decided (after the SC decision on BPSL)," Acharya said. Located in Odisha's Jharsuguda, BPSL recorded a crude steel production capacity of 3.38 million tonnes (MT) in FY25. JSW Steel had envisaged ramping up BPSL's capacity to 5 MT, eyeing to benefit from the higher sales and realisations from value-added products such as colour-coated, galvanised sheets, pipes and wires. In 2019, JSW Steel had won the bid to acquire Bhushan Power & Steel under the IBC for a little less than Rs 20,000 crore. BPSL has an operating capacity of 4.5 MT as of now. JSW Steel said the Committee of Creditors and Resolution Professional have also filed separate review petitions. The review petitions will be listed in the Supreme Court in due course. The Supreme Court has directed status quo in respect of proceedings before NCLT for implementation of the SC judgment until the review petition is decided. "We, along with our legal advisors, have analysed the matter and are of the view that we have strong grounds to pursue the Review Petition," he said.

JSW Steel's PAT more than doubles in Jun quarter on higher volumes, lower costs
JSW Steel's PAT more than doubles in Jun quarter on higher volumes, lower costs

Time of India

time2 days ago

  • Business
  • Time of India

JSW Steel's PAT more than doubles in Jun quarter on higher volumes, lower costs

JSW Steel 's consolidated net profit more than doubled year-on-year to Rs 2,209 crore in the June quarter, helped by higher sales volume in India and lower costs. The country's largest steelmaker by production capacity saw its steel sales volume for the quarter increase 9% year-on-year to 6.69 million tonnes at a consolidated level. In India, the company sold 6.43 million tonnes of steel compared to 5.90 million tonnes a year ago. Explore courses from Top Institutes in Select a Course Category Public Policy Technology Finance healthcare Data Science Product Management CXO Artificial Intelligence PGDM Data Analytics Digital Marketing MBA Design Thinking Leadership Management others Degree Data Science Healthcare Operations Management Cybersecurity Project Management Others MCA Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details Consolidated revenue from operations for the quarter was largely flat at Rs 43,147 crore, while operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37% year-on-year to Rs 7,576 crore. 'The EBITDA increased by 37% YoY, driven primarily by higher volumes and lower coking coal costs,' the company said in a statement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like These Are The Most Beautiful Women In The World Undo Total expenses for the quarter fell to Rs 40,325 crore from Rs 41,715 crore a year ago. EBITDA margins for the quarter stood at 17.6%, up 4.73 percentage points compared to the previous year. For its operations in India, the company made an EBITDA of Rs 11,658 per tonne, with a margin of 18.5%. Live Events JSW Steel incurred capital expenditure of Rs 3,400 crore during the quarter and plans to spend Rs 20,000 crore for the full year. Its net debt to EBITDA ratio improved to 3.20 times at the end of the June quarter from 3.34 times in the preceding three-month period. Net debt for the quarter increased Rs 3,287 crore from January-March, largely on account of investment in working capital. JSW Steel announced its earnings after market hours, and its shares closed almost flat at Rs 1,034.45 apiece on the BSE. Bhushan Power & Steel Earlier this year, the Supreme Court had struck down JSW Steel's buyout of Bhushan Power & Steel, terming its resolution plan for the company 'illegal'. In response, JSW Steel filed a review petition before the Supreme Court last month. The committee of creditors and resolution professional filed separate review petitions. 'We, along with our legal advisors, have analysed the matter and are of the view that we have strong grounds to pursue the review petition,' the company said in a statement.

JSW Steel starts FY26 on a high but remains cautious
JSW Steel starts FY26 on a high but remains cautious

Mint

time2 days ago

  • Business
  • Mint

JSW Steel starts FY26 on a high but remains cautious

Mumbai: JSW Steel Ltd reported better-than-expected profit for the June quarter, driven by higher production and sales volume as well as lower cost of coking coal, a key ingredient. The steelmaker's first-quarter profit jumped to ₹ 2,209 crore from Rs.867 in the same quarter a year ago, according to the company's exchange filings. A key reason for this was improved steel prices, primarily due to the government's 12% safeguard duty to protect the industry from cheap steel imports from China. 'Steel prices rose during the quarter, while sales volumes also picked up due to the ramp-up of the Vijayanagar expansion project,' said Suman Kumar, analyst at Dolat Capital. The rise in steel prices, however, is a temporary phenomenon and the management believes the government needs to do more to ensure greater profitability for Indian steelmakers, he added. JSW Steel, India's largest steelmaker by capacity, reported consolidated revenue of ₹ 43,147 crore for the April-June quarter, up from ₹ 42,943 a year earlier, beating the ₹ 42,790 crore projection, on average, of 23 analysts polled by Bloomberg. JSW Steel benefited from lower cost of raw materials, mainly coking coal, which was partly offset by higher fuel consumption due to planned blast furnace shutdowns. Mining royalties also fell, helping reduce total expenses. Earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter rose 37% year-on-year to ₹ 7,576 crore. The steelmaker maintained its production and sales guidance for 2025-26 at 30.5 million tonnes and 29.2 million tonnes, respectively. JSW Steel spent ₹ 3,400 crore in the June quarter out of its estimated capital expenditure of ₹ 20,000 crore for FY26. For FY25, JSW Steel had initially estimated a capex of ₹ 20,000 crore before lowering it to ₹ 16,000 crore. It missed that revised target, spending only ₹ 14,656 crore in FY25. The steelmaker reported consolidated production of 7.26 million tonnes for the June quarter, a 14% rise from a year ago. Sales volume improved 9% to 6.69 million tonnes. In an post-earnings interaction with analysts, JSW Steel's management said the company's sales volume would increase in the second quarter as the maintenance shutdowns were completed. Also, a second converter at JSW Vijayanagar Metallics Ltd is being commissioned, which will help lower the cost of production, they said. However, demand could weaken in the ongoing second quarter due to the monsoon rains. 'In Q2, the management expects to see some seasonal weakness in volumes due to the monsoon. While steel prices have come down, the company expects a further drop in coking coal prices, which will partially offset the price decline. The long-term outlook remains optimistic,' said Kumar. JSW Steel's management also said that it expects a favourable decision when the government reviews the safeguard duty on steel imports. The government imposed the 12% safeguard duty on 21 April for a period of 200 days. Although finished steel imports have moderated, exports also fell, and India continues to be a net importer. JSW Steel's management expects low priced imports to remain a concern, stressed by changes in globaltrade flows due to rising tariff uncertainties. The management also noted that while there has been some reduction in steel production in China in recent months, elevated exports of Chinese steel remain a challenge for India's steel industry. JSW Steel also said, based on legal opinion, that it had gained control over Bhushan Power and Steel Ltd as on 30 June and was continuing with the consolidation of BPSL's financial results with its results. The steelmaker expects to be compensated adequately if BPSL goes into liquidation after the SupremeCourt scrapped its resolution plan for the bankrupt company, as Mint reported on 23 May. JSW Steel has filed a review petition on the apex court's decision. JSW Steel shares closed Friday's trading on BSE mostly unchanged at ₹ 1,034.40 each. The stock has gained 14.24% so far this year, while the benchmark Sensex index has risen 4.14%.

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