JSW Group-backed steel major JSW Steel on May 23 reported a net profit of Rs 1,503 crore for the fourth quarter of FY25, marking a rise of around 16 percent on year from the Rs 1,299 crore net profit reported a year ago amid falling cost and improving margins.
Revenue from operations, however, fell around 3 percent on-year to Rs 44,819 crore during the March quarter, versus Rs 46,269 crore a year ago. Most steelmakers reported weakness in their quarterly topline owing to steel prices failing to gain momentum on weak demand and cheap imports from China and south-east Asia.
Operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the reporting quarter on a consolidated basis were Rs 6,378 crore, higher compared to Rs 6,124 crore in the same period a year ago. The operating EBITDA margin for the quarter was 14.23 percent, higher than the 13.2 percent reported a year ago, as input costs showed a decline year-on-year, despite sluggishness in pricing.
Sale of steel for the quarter, including both Indian and overseas operations, were 7.49 million tonne, higher by 11 percent year-on-year, with domestic sales improving by a significant 30 percent over the same period, as demand from infrastructure and automotive segments improved.
No BPSL Provision
Despite JSW Steel experiencing a setback in its acquisition of Bhushan Power and Steel (BPSL) through the Insolvency and Bankruptcy Code (IBC) process after the Supreme Court ordered BPSL's liquidation, the company said in a press release that it sees legal remedies to the apex court judgment delivered on May 2.
The company also did not make any provisions related to the BPSL judgment in its balance sheet, and said the recoverable amount is sufficient to cover the carrying value of assets under BPSL, valued at Rs 14,091 crore as on March 31, 2025.
JSW Steel has sent demand notices to various creditors of BPSL, worth Rs 19,300 crore, the sum that it had paid for its resolution plan that was approved by the National Company Law Tribunal. The company has also asked for a 60 day-pause in BPSL's liquidation proceedings, according to media reports.
Read More: BPSL resolution - JSW seeks refund and liquidation pause for 60 days
Paring Down Debt
Owing to the company cutting back its guided Rs 20,000 crore capital expenditure for FY25, as well as better cash flows and release of working capital, JSW Steel's net debt reduced by Rs 4,358 crore over December 31, 2024 to Rs 76,563 crore at the end of FY25.
Against the revised target of Rs 16,000 crore-Rs 17,000 crore for FY25, JSW Steel spent Rs 14,656 crore in capital expenditure.
For the year ahead, the company said in a release that it has guided 30.50 million tonne as the production target for FY26, while it is also targeting consolidated sales of 29.20 million tonne, that vast majority of which is in its Indian operations.
The results were released in the post market hours of May 23. The shares of the company had closed 0.4 percent in the green at Rs 1,009.20 apiece on the National Stock Exchange.
Along with the Q4 results, the company announced a final dividend of Rs 2.8 per equity share for the financial year 2025. Further, the company’s board has approved the plan to raise long-term funds by issuing non-convertible debentures worth up to Rs 7,000 crore, and/or equity shares and/or convertible securities worth up to Rs 7,000 crore.
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