JSW Steel Q4 Results: Net Profit Up 16% to ₹1,503 Cr
JSW Steel, a leading steel company backed by the JSW Group, reported a net profit of ₹1,503 crore for the fourth quarter of FY25 on May 23. This reflects a 16% increase compared to ₹1,299 crore in the same quarter last year, driven by cost reductions and improved margins.
However, revenue from operations fell by 3% to ₹44,819 crore in the March quarter, down from ₹46,269 crore a year ago, due to weak demand and lower steel prices caused by cheap imports from China and Southeast Asia. Most steelmakers reported weaker quarterly earnings due to these factors.
On a consolidated basis, EBITDA for the reporting quarter was ₹6,378 crore, higher than ₹6,124 crore in the same period last year. The EBITDA margin for the quarter was 14.23%, an improvement over the 13.2% recorded a year ago, despite sluggish pricing, as input costs declined year-on-year.
Steel sales for the quarter, including Indian and overseas operations, reached 7.49 million tons, up 11% year-on-year. Domestic sales saw a remarkable 30% increase, driven by improved demand from infrastructure and automotive sectors.
Despite a setback in the acquisition of Bhushan Power and Steel (BPSL) due to the Supreme Court’s liquidation order, JSW Steel stated it is exploring legal options against the May 2 ruling. The company has not made provisions for the BPSL decision in its balance sheet, asserting that the recoverable amount is sufficient to cover the carrying value of assets, valued at ₹14,091 crore as of March 31, 2025.
JSW Steel issued a demand notice of ₹19,300 crore to BPSL’s creditors, which it had paid under its resolution plan approved by the National Company Law Tribunal. According to media reports, the company has also sought a 60-day stay on BPSL’s liquidation proceedings.
With a reduction in its planned ₹20,000 crore capital expenditure for FY25 to ₹16,000-17,000 crore, coupled with improved cash flow and working capital release, JSW Steel’s net debt decreased by ₹4,358 crore from December 31, 2024, to ₹76,563 crore by the end of FY25. The company spent ₹14,656 crore on capital expenditure in FY25.
For FY26, the company has set a production target of 30.50 million tons and consolidated sales of 29.20 million tons, primarily from its Indian operations. The results were announced after market hours on May 23. On the National Stock Exchange, the company’s shares closed 0.4% higher at ₹1,009.20 per share.
JSW Steel declared a final dividend of ₹2.8 per equity share for FY25. Additionally, the board approved a plan to raise long-term funds through non-convertible debentures up to ₹7,000 crore and/or equity shares and convertible securities up to ₹7,000 crore.