JSW Steel shares fire up to 4-month high on spike in Feb steel output

JSW Steel is one of India's largest steel producers.

Shares of JSW Steel rose 2 percent and scaled a 4-month high of Rs 1,032.75 on March 10 after the company reported a 12 percent year-on-year spike in consolidated crude steel production for February 2025, hitting 24.07 lakh tonnes, up from 21.49 lakh tonnes in the same period last year.

Domestic operations accounted for 23.32 lakh tonnes, marking a 13 percent on year growth, while US production stood at 0.75 lakh tonnes.

At 3.02 pm, shares of JSW Steel were trading at Rs 1,014.75 on the NSE.

JSW Steel has aggressively expanded into a global steel giant over the past three decades, with a consolidated crude steel capacity of 35.7 million tonnes per annum (MTPA), including 1.5 MTPA in the US. In the future, the company’s domestic capacity of 32.5 MTPA is set to increase to 34.2 MTPA following the full commissioning of an expansion project at JSW Vijayanagar Metallics Ltd (JVML) in Karnataka. Looking ahead, JSW Steel also plans to boost its total capacity to 43.5 MTPA within the next three years.

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The company's Vijayanagar plant, currently India’s largest single-location steel production facility, has a current capacity of 17.5 MTPA, including the under-commissioning expansion.

Despite the production growth, JSW Steel's Q3 FY25 net profit dropped over 70 percent YoY to Rs 719 crore, compared to Rs 2,450 crore in Q3 FY24, primarily due to higher expenses. Total income for the quarter stood at Rs 41,525 crore, slightly lower than Rs 42,134 crore in the previous year. Meanwhile, expenses increased to Rs 40,250 crore from Rs 38,815 crore, with capital expenditure (capex) for Q3 FY25 at Rs 3,087 crore, bringing total capex for the April-December period to Rs 10,937 crore.

JSW Steel’s shares have gained 8.1 percent in the past week, largely driven by a weaker US dollar index, China’s economic stimulus measures, and production cuts announced by Beijing.

China, the world’s largest steel consumer set its 2025 GDP growth target at 5 percent, sparking optimism for sustained demand.