JSW Steel (JSWSTEEL) Q4 22/23 earnings summary

Executive summary

• FY23 delivered record consolidated crude steel production of 24.16 MnT, up 24% YoY, at 90% capacity utilisation; consolidated steel sales reached 22.39 MnT, up 23% YoY.

• Stronger volumes and domestic demand lifted revenue, but lower steel realisations and high coal, power and fuel costs sharply reduced profitability.

Financial highlights

• Consolidated revenue from operations rose 13% YoY to ₹165,960 crore; operating EBITDA fell 52% to ₹18,547 crore and PAT fell to ₹4,139 crore from ₹20,938 crore.

• Consolidated EBITDA margin was 11.2% versus 26.7% in FY22; EBITDA per tonne was ₹8,284, down 61% YoY.

• Standalone revenue from operations rose 11% to ₹131,687 crore; operating EBITDA declined 52% to ₹15,371 crore and PAT declined 70% to ₹4,937 crore.

• Diluted EPS was ₹17.14 consolidated versus ₹85.49 in FY22, and ₹20.42 standalone versus ₹69.10.

Outlook and guidance

• FY24 sales-volume target: 25 MnT, up 10% YoY, supported by expanded capacity, high utilisation and a broad product range.

• Domestic steel capacity is targeted to reach 37 MTPA by FY24-25; longer-term ambition is 50 MTPA by FY30-31.

• Planned CapEx over FY24-FY26 is ₹51,925 crore, including growth, cost-saving and mining projects; the stated three-year plan is approximately ₹50,000 crore.

• Indian steel demand is expected to add 8-10 MnT in FY24; domestic demand growth is projected at 7-8% for FY24.