Latest news with #JSWSteelLtd
Mint
19 hours ago
- Business
- Mint
For steel companies, Q4 was an inflexion point as prices, demand firm up
Steel producers saw a turnaround in their performance during the March quarter (Q4FY25), aided by a decline in raw material prices and continued momentum in domestic demand. While realization remained under pressure, prices started climbing from March, in anticipation of the safeguard duty, announced in April. The combined Ebitda of the four integrated steel players, JSW Steel Ltd, Tata Steel Ltd, Steel Authority of India Ltd (SAIL) and Jindal Steel & Power Ltd (JSPL) rose only marginally by 1% during the quarter. This, however, marks a significant improvement after a decline of 14% in Q3FY25. What's more, firm steel prices and a decline in imports are expected to further improve their profitability moving ahead. Average realization in Q4FY25 for steel producers declined by 9% year-on-year, lower than the 11% decline in Q3FY25. Flat products producers, which accounted for 95% of imports, suffered the most. Despite the lower realisation, profitability was supported by lower raw material prices with benchmark Australian coking coal prices averaging about $200 per tonne in Q4, almost 40% lower year-on-year, whereas domestic iron ore prices declined by about 7%. Raw material prices have remained subdued in Q1FY26 till date with coking coal and iron ore prices down about 23% and 11% year-on-year, respectively, in the international market. Strong volume growth of 10% also helped cushion the impact of lower realization during the quarter. Domestic demand is expected to remain strong, with the World Steel Association projecting India's steel demand to increase by 8.5% in 2025, on top of 8% growth in 2024, and against a global growth of 1.3%. However, the subdued pricing environment led to sharp moderation in investments, with the sector's capex growing by only 2% in FY25, a sharp decline from 22% in FY24, as per a Nuvama Institutional Equities Q4FY25 earnings review report. Also Read: India likely to seek removal of US steel tariffs in trade talks rather than immediate retaliation Bright future The outlook for the industry remains strong with average flat products prices moving up by over 7% sequentially in Q1FY26-to-date to ₹52,000 per tonne, after the imposition of safeguard duty. While this is still lower by about 3% year-on-year, the industry expects prices to firm up further after the monsoon. Steel imports have also dropped by 21% in April, reflecting the impact of the safeguard duty, as per provisional Joint Plant Committee data. The Nuvama report projects steel industry companies to report strong earnings growth of 20% in FY26 against 5% in FY25, with revenue growth of 8% against 3% in FY25. Among the outperformers are SAIL and JSW Steel with projected earnings per share growth of 38% and 31%, respectively. Amid the improving outlook, SAIL and Tata Steel shares have gained 18% and 16% so far in 2025, respectively. JSW Steel, weighed down by the Supreme Court's verdict on Bhushan Steel, is up at a smaller rate of 7%. Steel and raw material price movement will determine the performance of stocks in the coming months.
Business Standard
29-05-2025
- Business
- Business Standard
Jindal Stainless Ltd Surges 3.44%
Jindal Stainless Ltd has added 18.02% over last one month compared to 7.06% gain in BSE Metal index and 1.62% rise in the SENSEX Jindal Stainless Ltd gained 3.44% today to trade at Rs 668.6. The BSE Metal index is up 0.7% to quote at 31228.63. The index is up 7.06 % over last one month. Among the other constituents of the index, JSW Steel Ltd increased 1.66% and Steel Authority of India Ltd added 1.48% on the day. The BSE Metal index went down 5.89 % over last one year compared to the 9.51% surge in benchmark SENSEX. Jindal Stainless Ltd has added 18.02% over last one month compared to 7.06% gain in BSE Metal index and 1.62% rise in the SENSEX. On the BSE, 2855 shares were traded in the counter so far compared with average daily volumes of 41583 shares in the past one month. The stock hit a record high of Rs 848 on 09 Jul 2024. The stock hit a 52-week low of Rs 497 on 07 Apr 2025.
Yahoo
24-05-2025
- Business
- Yahoo
JSW Steel Ltd (BOM:500228) (Q4 FY 2025) Earnings Call Highlights: Record Production and ...
Consolidated Revenue: INR44,819 crores for Q4 FY '25. Operating EBITDA: INR6,378 crores for Q4 FY '25. EBITDA Margin: 14.2% during the quarter. Profit After Tax: INR1,501 crore, doubled over the previous quarter. Crude Steel Production: 7.63 million tonnes, up 12% Y-o-Y and 9% Q-o-Q. Steel Sales: 7.49 million tonnes, up 11% Y-o-Y and 12% Q-o-Q. Domestic Sales: 6.72 million tonnes, grew by 30% Y-o-Y and 12% Q-o-Q. Net Debt Reduction: INR4,350 crores due to better cash generation and working capital release. CapEx: INR3,700 crores during the quarter and close to INR15,000 crores for FY '25. JSW One GMV: INR12,500 crores for FY '25, up 2.4x Y-o-Y. Overseas Operations EBITDA: Baytown mill USD4.4 million; Ohio operations reduced losses to USD7.5 million; Italian operations EBITDA loss of EUR 0.7 million. Warning! GuruFocus has detected 9 Warning Signs with BOM:500228. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. JSW Steel Ltd (BOM:500228) reported the highest-ever quarterly crude steel production at 7.63 million tonnes, marking a 12% year-over-year increase. The company achieved its highest-ever steel sales at 26.5 million tonnes for FY '25, with domestic sales growing by 30% year-over-year. JSW Steel Ltd (BOM:500228) launched GreenEdge, a low-emission steel brand, contributing to over 1 million tonnes of CO2 savings. The company received responsible steel certification for four plants and was recognized as a 2025 Sustainability Champion by the World Steel Association. JSW Steel Ltd (BOM:500228) plans to enhance raw material security by commissioning new mines in Karnataka and Goa, targeting significant production increases. The company faced a sharp decline in exports by 27% to 6.3 million tonnes, resulting in India remaining a net importer for the second consecutive year. JSW Steel Ltd (BOM:500228) is dealing with legal challenges regarding its resolution plan for BPSL, with the Supreme Court rejecting the plan and directing refunds. The Italian operations were impacted by delayed orders and rail system congestion, resulting in an EBITDA loss of EUR 0.7 million. The company's net debt increased by around INR4,350 crores, despite better cash generation and working capital release. There are ongoing geopolitical tensions and tariff escalations affecting the global economy, which could impact future growth. Q: Can you provide clarity on the Supreme Court's decision regarding BPSL and its impact on production and sales? A: The matter is sub judice, but we have implemented the resolution plan in compliance with the law. We have strong grounds for legal remedies, and production and sales at BPSL continue as we maintain control of the assets. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: What is the expected contribution of JVML to standalone sales, considering the BF-3 shutdown? A: JVML is expected to contribute about 3.5 million tonnes of incremental production this year. Despite the BF-3 shutdown, we anticipate improved production due to the ramp-up at JVML and other operational improvements. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: Could you elaborate on the cost and realization outlook for the near term? A: We anticipate a $10 to $15 reduction in coking coal costs, and JVML's stabilization will lower costs. Renewable energy initiatives will also reduce power costs. We expect a price improvement of INR3,200 to INR3,250 per tonne in Q1 FY '26. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: What is the strategy for iron ore sourcing and the expected captive versus non-captive mix for FY '26? A: We aim for 40% of our iron ore requirement to be met from captive sources in FY '26, up from 37% in FY '25. We are increasing production from Karnataka and starting operations in Goa to offset surrendered mines. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: How do you plan to manage the debt levels given the current net debt-to-EBITDA ratio? A: The ratio has improved from 3.57 to 3.34. As EBITDA normalizes with improved pricing, we expect further improvement in these ratios. The increase in net debt is primarily due to a lower EBITDA base, which is expected to correct. - Swayam Saurabh, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Standard
02-05-2025
- Business
- Business Standard
Quick Wrap: Nifty Metal Index registers a drop of 0.74%
Nifty Metal index closed down 0.74% at 8518.4 today. The index has lost 6.00% over last one month. Among the constituents, JSW Steel Ltd dropped 5.50%, Hindustan Zinc Ltd fell 2.39% and National Aluminium Company Ltd added 2.11%. The Nifty Metal index has decreased 8.00% over last one year compared to the 7.50% spike in benchmark Nifty 50 index. In other indices, Nifty Pharma index has slid 0.67% and Nifty Media index increased 0.49% on the day. In broad markets, the Nifty 50 witnessed a rise of 0.05% to close at 24346.7 while the SENSEX increased 0.32% to close at 80501.99 today.
