JSW Steel Limited, India’s leading steel producer, announced its financial results for Q3 FY25, ending December 31, 2024. The company reported a consolidated net profit of INR 719 crore (USD 83.4 mln), marking a steep 70.65pct decline compared to INR 2,450 crore in the same quarter last year.
Total revenue from operations dropped by 1.34pct YoY to INR 41,378 crore (USD 4.8 bln) during the quarter. However, EBITDA grew 3pct QoQ, as higher sales volumes and lower coking coal costs offset the impact of declining steel realizations.
Exports accounted for 8pct of sales from Indian operations in Q3 FY25, slightly up from 7pct in Q2 FY25. Consolidated crude steel production for the quarter rose by 2pct YoY and 4pct QoQ to 7.03 mln tons, with capacity utilization in Indian operations reaching 91pct. Steel sales grew robustly, increasing by 12pct YoY and 10pct QoQ to 6.71 mln tons.
JSW Steel highlighted the challenges posed by elevated steel imports, particularly from China, which have pressured profitability. Although steel imports declined 10.8pct QoQ to 2.83 mln tons in Q3, they surged 16.7pct YoY to 8.21 mln tons in the first nine months of FY25. Exports grew significantly by 44pct QoQ in Q3 to 1.82 mln tons but remained down 16.5pct YoY for 9M FY25, totaling 4.58 mln tons. India remained a net steel importer during the quarter and the fiscal year-to-date.
To curb rising imports, the Director General of Trade Remedies (DGTR) has initiated trade investigations, including safeguard and anti-dumping probes, which are ongoing.
Despite challenges, JSW Steel anticipates a recovery in Q4, supported by increased government capital expenditure and improved rural consumption, which could boost demand in the coming months.
1 USD / 86.2 INR
