The company reported its profit during market hours and its shares closed at Rs 1,166.80 on the BSE, down 0.4% from the previous close.
The country’s largest steel producer had production of 7.90 million tonnes, an all-time high, with a growth of 17% compared to the previous year. This was due to the fact that the Dolvi plant was operating at optimal capacity, and some other plants were ramping up after their capacity expansion.
Consolidated sales volume increased 20% year-on-year to 7.34 million tonnes during the quarter, of which domestic sales amounted to 6.33 million tonnes.
The higher volume growth helped consolidated operating revenues rise 14% year-on-year to Rs 45,152 crore. Reported earnings before interest, taxes, depreciation and amortization, meanwhile, were 31% higher at Rs 7,115 crore.
Excluding unrealized foreign exchange gains and losses on long-term borrowings, net of unrealized foreign exchange gains and losses on intercompany receivables, adjusted EBITDA stood at Rs 7,849 crore, up 39% year-on-year. Adjusted EBITDA per tonne stood at Rs 10,701, up 16% over the previous year. Earlier this year, the government had imposed a 12% safeguard duty on certain steel products for a period of 200 days. It is proposed to extend this levy for a period of three years. JSW Steel had net debt of Rs 79,153 crore at the end of the September quarter, down by Rs 697 crore compared to the June quarter. The net debt/EBITDA ratio fell to 2.97 times at the end of the September quarter from 3.20 times a quarter ago.
The company is currently the largest steel producer in the country with a production capacity of over 34 million tons. It plans to spend Rs 20,000 crore on capital expenditure in the current fiscal, and Rs 22,000 crore each in FY27 and FY28.
It has spent Rs 6,535 crore on capital expenditure in this fiscal. The company is currently expanding capacity at its Dolvi plant and aims to have a consolidated capacity of 43.4 million tonnes within three years.
The company’s board of directors has approved a strategic reorganization of its US operations, as part of its ongoing efforts to consolidate and simplify the overall group structure. “The plan is expected to reduce the number of legal entities, simplify compliance and create a unified holding structure for corporate America,” JSW Steel said in an exchange filing.
Currently, the company’s investments are under Periama Holdings LLC and Acero Junction Holdings Inc. The Baytown operations and certain coking coal assets fall under Periama, a wholly owned subsidiary of JSW Steel (Netherlands) BV, which is in turn wholly owned by JSW Steel. The activities in Ohio have now been transferred to Acero, which will cease to exist after the restructuring.
In India, the board of directors has approved the merger of certain wholly owned subsidiaries – Amba River Coke Limited, Monnet Cement Limited and JSW Retail and Distribution Limited with itself. “The merger will deliver operational efficiencies as there are synergistic links between these companies,” the company said.
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