Latest news with #JSWSteelLtd
Time of India
22-07-2025
- Business
- Time of India
Watch out for cheap steel, JSW tells India amid rising China flow
India needs to remain watchful against the potential dumping of low-priced steel into the country, Jayant Acharya, joint managing director of JSW Steel Ltd. , said on Tuesday. Speaking to BloombergTV, Acharya said that imports remain a concern for the domestic industry despite the government imposing a 12% safeguard duty. Acharya warned that US tariffs on steel were contributing to fears of global oversupply, especially from China, the world's largest steel producer. He said India, which is seeing rapid economic growth, was exposed to the risk of trade diversions caused by such tariffs. Explore courses from Top Institutes in Please select course: Select a Course Category Degree Finance others Management Public Policy MBA Cybersecurity Artificial Intelligence Digital Marketing Project Management PGDM Leadership Technology Others Healthcare Product Management Data Science Design Thinking CXO healthcare Data Science Data Analytics Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details Acharya pointed to the increase in India's imports of iron and carbon steel products from China in recent months. According to China customs data, imports touched 264,854 tons in June — the highest monthly figure since October. However, he added that the overall volume for the first half of the year was still lower compared to the same period a year earlier. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo JSW Steel's own performance showed significant growth. The company's profit for the quarter ending June more than doubled, surpassing the average estimates of analysts. Looking ahead, Acharya said India would remain JSW's main market for expansion, supported by strong demand from the construction sector. The company currently operates with an annual steelmaking capacity of 35.7 million tons, with nearly 96% of it located in India. Live Events JSW aims to expand this capacity to 42 million tons by September 2027 and further to 50 million tons by the end of the decade. Acharya said India would continue to account for the largest share of this growth.
Mint
21-07-2025
- Business
- Mint
JSW Steel gets back its lustre in Q1; safeguard duty provides support
JSW Steel Ltd's consolidated Ebitda jumped 38% year-on-year to ₹7,600 crore in Q1FY26, thanks to lower raw material costs, royalties and higher volumes. Ebitda per tonne rose 26% to ₹11,324 when overall revenue was little changed at ₹43,100 crore. Prices haven't recovered fully. While blended realization at ₹64,500 per tonne is up about ₹3,300 from the lows in Q4FY25, it is about 8% down year-on-year. The Indian steel industry got a push after the imposition of safeguard duty in April, which led to a notable 34% sequential drop in imports in Q1. JSW's sales grew by 9% to 6.7 million tonnes, with domestic volumes up by 12%. The management expects sales to reach 29.2 mt in FY26, up 13% year-on-year, backed by strong domestic outlook. While prices moderated in July with lower construction activity, the outlook is better. 'Domestic steel prices bottomed out in mid-July and should recover post-monsoon," Nuvama Institutional Equities said in an 18 July report. It projects JSW's FY26 Ebitda growth at 47%, aided by higher volumes, prices and lower raw material costs. Among sectors, consumer appliances and automotive saw robust growth of 27% and 20%, possibly in anticipation of a sales pick-up in the upcoming festive season. Also, the US business reported positive Ebitda against a loss in the previous year, thanks to 18% volume growth and higher realization. Yet, with 4% contribution to total volumes, its impact on consolidated financials was limited. Expansion projects JSW is undertaking significant capital expenditure towards capacity expansion and backward integration projects to leverage strong domestic demand. The 5 million tonne per annum (mtpa) expansion at Vijayanagar will likely provide incremental Ebitda of about ₹1,500 per tonne with higher operational efficiency. Besides, the commissioning of three iron ore mines this year would help it achieve 40% raw material security against 36% in FY25. JSW's total domestic capacity is expected to reach 41.9 mtpa from the current 34.2 mtpa, with the commissioning of the Dolvi phase III expansion and other smaller projects by September 2027. The FY26 capex plan is ₹20,000 crore, up from ₹14,700 crore in FY25. Still, strong cash flows helped JSW reduce its net debt-to-Ebitda to 3.2x in Q1 from 3.34x in Q4FY25. The stock trades at an enterprise value of 9.4x FY26 estimated Ebitda, near its five-year average, Bloomberg data shows. Post-monsoon price trends and a volume ramp-up should provide further cues for the stock.
Mint
18-07-2025
- 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%.
Mint
06-06-2025
- 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.
