JSW Steel Q4 Profit More Than Doubles on Higher Steel Prices
JSW Steel reported a more than two-fold rise in adjusted quarterly profit for the March quarter, supported by recovering steel prices and strong domestic demand. The company benefited from higher construction activity and increased government project execution during the quarter, while India’s tariff measures on select Chinese steel imports also aided price recovery.
The Mumbai-based steelmaker posted revenue from operations of 511.8 billion rupees for the quarter ended March 31, marking a 14.2% increase from a year earlier and surpassing analyst estimates. Sales volumes grew 6%, helped by a 10.4% rise in steel consumption. Consolidated profit before exceptional items and tax surged 153% to 44.89 billion rupees, while net profit received an additional boost from a one-time gain linked to the slump sale of Bhushan Power and Steel’s steel business.
JSW Steel’s operating EBITDA margin improved to 16.87% from 14.23% a year ago due to better sales realisation. However, rising coking coal costs increased pressure on expenses, which climbed 8.9% during the quarter. The ongoing Iran conflict and disruption in the Strait of Hormuz reduced LNG supplies globally, prompting greater reliance on coal and driving up coking coal prices.
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