JSW Steel (JSWSTEEL) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue from operations for Q1 FY25 was ₹42,943 crore, with net profit at ₹867 crore, down significantly year-over-year due to margin pressure and higher costs.

• Crude steel production reached 6.35 million tonnes (down 1% YoY), while steel sales rose 7% YoY to 6.12 million tonnes, with domestic sales up 14% YoY.

• Value-added and special products (VASP) reached a record 64% of total sales.

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

• Recognized among India's Best Employers and received multiple sustainability and customer experience awards.

Financial highlights

• EBITDA for Q1 FY25 was ₹5,510 crore, with a margin of 12.8–13.1%; net profit stood at ₹867 crore.

• EBITDA per ton was ₹9,007; NSR realizations improved by ₹550 per ton QoQ.

• Net debt increased to ₹80,199 crore, with net debt/equity at 0.97x and net debt/EBITDA at 3.00x.

• Capex for Q1 was ₹4,466 crore; full-year capex guidance ranges from ₹20,000 crore to ₹30,000 crore.

• Standalone and consolidated EBITDA and net profit margins declined year-over-year due to higher input costs.

Outlook and guidance

• FY25 guidance: total combined production of 28.4 million tonnes and sales of 27 million tonnes.

• Q2 expected to benefit from lower raw material costs, supporting improved steel spreads.

• Robust steel demand anticipated, driven by infrastructure, private CapEx, and rural recovery.

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