JSW Steel Delivers 16% YoY PAT Growth in Q4

JSW Steel reported a significant rise in consolidated net profit in the fourth quarter, though revenue from operations dipped marginally. The performance of the steel major suggests operational efficiency and domestic sales resilience, balancing weaker top-line numbers.

For the quarter ended the firm reported a consolidated net profit of ₹1,503 crore, a growth of 16% YoY from ₹1,299 crore recorded during the same period last year. The profit rise was achieved even though revenue from operations dipped 3% YoY to ₹44,819 crore.

Operational Highpoints and EBITDA Performance

One of the major drivers for the enhanced bottom line seems to be good operational performance and cost control. Operating EBITDA in the fourth quarter was at ₹6,378 crore, which yielded an EBITDA margin of 14.2%. This is a 14% QoQ growth, driven mostly by creased sales volumes and lower coking coal prices.

The firm experienced strong growth in volumes of production and sales. Consolidated crude steel production was 7.63 million tonnes, up 9% QoQ and 12% YoY. Capacity utilization at Indian operations was healthy at 93% in the quarter, higher compared to 91% in the last quarter. Consolidated sales of steel were 7.49 million tonnes, a 12% QoQ and 11% YoY increase.

Sales in the domestic market were especially robust at 6.72 million tonnes, increasing substantially by 30% YoY and 12% QoQ. Institutional sales volumes increased by 11% QoQ and 33% YoY, while retail sales increased by 15% QoQ and 25% YoY. Exports were steady QoQ at 8% of sales from Indian operations. For the year, the company realized consolidated annual production of 27.79 million tonnes and sales of 26.45 million tonnes, in line with the revised volume guidance provided in Q3FY25.

Subsidiary Contribution and Legal Issues

The Indian operations made a strong contribution, having registered revenue of ₹42,679 crore and operating EBITDA of ₹6,436 crore.

Subsidiary Bhushan Power and Steel (BPSL) recorded crude steel production of 0.98 million tonnes and sales volume of 0.94 million tonnes. BPSL's operating revenue was ₹5,635 crore with operating EBITDA of ₹570 crore. BPSL had a net profit after tax (PAT) of ₹42 crore during the quarter. 

This subsidiary is in the news lately as the Supreme Court has rejected JSW Steel's resolution plan for BPSL and directed a refund of the payments made to creditors and its equity contribution. However, JSW Steel remains confident in its legal position and intends to pursue all available avenues to challenge the ruling.

Another subsidiary, JSW Steel Coated Products recorded a production volume of 1.20 million tonnes and sales volume of 1.22 million tonnes, rolling out revenue from operations of ₹9,035 crore.

Financial Position

The health of the company's finances improved, with net gearing being at 0.94x as of the end of the quarter, a decrease from 1.00x as of the end of Q3FY25. Net debt to EBITDA also bettered to 3.34x from 3.57x in the same period.JSW Steel shares closed 0.36% higher at ₹1,009 on the NSE on Friday.

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