JSW Steel (JSWSTEEL) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue from operations for Q1 FY25 was ₹42,943 crore, with operating EBITDA at ₹5,510 crore and net profit at ₹867 crore, reflecting a YoY decline in profit due to margin pressure and higher costs.

• Crude steel production was 6.35 million tonnes (down 1% YoY), while steel sales grew 7% YoY to 6.12 million tonnes, driven by strong domestic demand and record value-added and special products share at 64%.

• Board approved transfer of the 30 MTPA Odisha slurry pipeline to JSW Infrastructure for ₹1,700 crore, enabling capital efficiency and a 20-year take-or-pay agreement.

• Recognized among India's Best Employers Among Nation-Builders 2024 and received multiple sustainability and customer experience awards.

• JSW One digital platform scaled rapidly, with over 58,000 customers and GMV over ₹2,500 crore in Q1, and 4.2x YoY growth in steel volumes.

Financial highlights

• Consolidated revenue from operations was ₹42,943 crore, up 2% YoY but down 7% QoQ; operating EBITDA was ₹5,510 crore, down 10% QoQ and 22% YoY; net profit was ₹867 crore, down 64% YoY.

• EBITDA margin stood at 12.8%-13.1%; EBITDA per ton was ₹9,007.

• Net debt stood at ₹80,199 crore, up due to capex and working capital; net debt/equity at 0.97x and net debt/EBITDA at 3.00x.

• Indian operations contributed ₹40,537 crore in revenue and ₹5,417 crore in EBITDA; profit after tax was ₹1,156 crore.

• Cash and cash equivalents stood at ₹9,217 crore.

Outlook and guidance

• FY25 guidance: total combined production of 28.40 million tonnes and sales of 27.00 million tonnes.

• Expect improved volumes in Q2 from new and existing facilities, with benefits from lower raw material costs.

• Steel prices expected to remain range-bound; margins to be supported by cost savings and better product mix.

• Strong revival of public capex and continued momentum in energy transition and real estate investment expected to support demand.

• Global economic growth forecasted at 3.2% for 2024 and 3.3% for 2025; India’s GDP growth projected at 7.2% for FY25.