JSW Steel reported its financial results for the quarter ending in December 2024, showing that it missed profit expectations due to a slowdown in global steel demand and weaker domestic prices. The company’s net profit dropped by 70% compared to the same period last year, falling to 7.17 billion rupees ($83.2 million), which was below the analysts' average estimate of 7.37 billion rupees.
While steel demand in India is expected to increase, cheap steel shipments from China put pressure on producers in Asia. Even though Chinese producers reduced their output, the country’s excess steel production negatively impacted global demand. JSW Steel's crude steel production increased by 2% y-o-y to 7.03 million tons, compared to a 12% increase during the same period last year.
The company’s revenue decreased by 1.3% q-o-q to 41,378 crore rupees. However, there was a strong increase in domestic sales, which rose 14% year-on-year, reaching a historic high of 5.99 million tons. JSW attributed this growth to strong corporate and retail sales. Additionally, the export share increased to 8% in the quarter.
JSW Steel also faced a tough period in its global operations. It reported an EBITDA loss of USD 15.58 million from its US operations due to lower sales prices. In India, its operating EBITDA declined by 20%, falling to 5,564 crore rupees.
The company’s investment spending for Q3 was 3,087 crore rupees, with a total of 10,937 crore rupees in investments made during the first nine months of the fiscal year. Net debt decreased by 1,884 crore rupees to 80,921 crore rupees, due to the release of working capital and cash generated from operations.
JSW Steel mentioned that India’s economic growth is moderate, but it expects a recovery in the fourth quarter, driven by government investment spending, strong agricultural output, and improvement in rural consumption.
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