JSW Steel, India's leading steel producer, produced a total of 2.323 million tons of crude steel in November. This represents an increase of 5% compared to the same period last year. Production at its Indian operations increased by 7% to 2.253 million tons, with a capacity utilization rate of 94%. In the US operations, however, JSW Steel USA Ohio's production fell by 22% to just 70,000 tons.
Despite the increase in production, the company's net profit for the second quarter of FY 2024-25 fell by 85% to Rs 404 crore (about USD 48.7 million). The main reason for this decline was cited as a reserve of Rs 342 crore (about USD 41.2 million) reserve for the planned closure of the Jajang iron ore block in Odisha. In addition, lower steel prices and a 3% decline in sales volumes to 6.13 million tons led to an 11% decline in revenues. For the quarter, JSW Steel's total revenue declined to Rs 39,684 crore (about USD 4.78 billion).
The company had filed applications to surrender the mining license for the Jajang iron ore block in Odisha's Keonjhar district in August 2024 due to its uneconomic status. The block, which was purchased in an auction held in 2020, was among JSW Steel’s four iron ore mining licences. The final approval of the license surrender process is still pending.
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