JSW Steel Q2 Result: Net profit at Rs 2,773 crore on low fuel cost, high sales

JSW Steel Vijayanagar facility

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26 Aug, 2025 12:21

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JSW Steel reported a net profit of Rs 2,773 crore in the second quarter of 2023-24 as an uptick in government spending on infrastructure projects coupled with narrowing costs bolstered margins. The company had reported a net loss of Rs 925 crore in the same quarter a year ago.

Lower coking coal cost and higher sales volumes supported the profit growth even as there was a lower operating profit contribution from the overseas operations in the quarter.

The Sajjan Jindal-led steel giant reported quarterly consolidated total income of Rs 44,821 crore in the September quarter as against Rs 41,966 crore a year ago.

“Steel production as well as consumption remains strong, aided by government capex as well as overall healthy economy. India’s finished steel consumption during Q2 FY24 was 32.8 million tonnes, up 16.1 percent YoY while crude steel production grew 15.9 percent YoY to 34.81mt,” the company said in a statement.

The company was projected to report a 7 percent dip in net profit to Rs 2,177.70 crore from the previous quarter while the revenue was expected to climb 1 percent to Rs 42,428 crore both sequentially as well as annually, according to estimates from 10 brokerages collected by Moneycontrol.

Consolidated crude steel production for the quarter stood at 6.34 million ton, lower by 1 percent quarter-on-quarter and higher by 12 percent year-on-year. The company had taken certain maintenance shutdowns at Indian operations during the quarter that resulted in an average capacity utilisation of 89 percent. Capacity utilisation was lower at the Ohio, USA operations due to adverse market conditions.

JSW Steel reported an exceptional profit of Rs 589 crore in the September quarter as against Rs 591 crore a year ago.

The exceptional items in the quarter included a gain of Rs 780 crore on its investments held in Creixent Special Steels Ltd upon fair valuation as a part of the merger of JSW Ispat Special Products (formerly Monnet Ispat & Energy) and the holding company Creixent Special Steels with itself.

The company reported another gain of Rs 198  crore from sale of property, plant and equipment and mineral rights held in West Virginia.

But the gains were partly offset as the company had to make a provision amounting to Rs 389 crore after its writ petition was dismissed by the High Court of Bombay, Goa Bench in the Goa Green Cess matter.

Robust demand in the domestic market helped the company clock standalone steel sales volumes of 5.41 million tonnes in July-September, higher by 10 percent QoQ and 8 percent YoY. The company was able to reduce the inventory that was built in the first quarter of 2023-24.

On a standalone basis, JSW Steel registered revenue from operations of Rs 33,738 crore, higher by 3 percent QoQ and 4 percent YoY. The growth was mainly driven by volumes and partially offset by lower sales realisation.

The corresponding profit after tax was Rs 2,913 crore for the quarter, a growth of 71 percent QoQ and a significant increase from the loss of Rs 91 crore reported in Q2 FY23.

The pace of construction and activity in the second quarter was not as significantly impacted as it typically is in monsoon months; poor rains in August and September helped to keep demand afloat in India, boosting prices.

Lower volumes due to adverse market conditions in the US, as well as lower steel prices, impacted overseas performance during the quarter.

In the second quarter of FY24, JSW Steel’s capex in India was Rs 3,701 crore and consolidated was Rs 3,816 crore. During H1 FY24 capex spend in India was Rs 7,795 crore and consolidated was Rs 7,996 crore, against the planned capex spend of Rs 18,800 crore in India and Rs 20,000 crore consolidated for FY24.

JSW Steel said that its 5 MTPA brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site.

“The construction activities of all packages are currently underway and equipment erection has commenced. Erection of one Convertor has been completed in the Steel Melt Shop.  The project is expected to be completed by the end of FY24,” the company said.

JSW Steel Coated Products Limited is likely to commission its colour-coated steel line capacity of 0.12 MTPA in Jammu and Kashmir in Q4 FY24.

The end of FY24 will also see JSW Steel arm Bhushan Power & Steel Limited (BPSL) complete the Phase-II expansion from 3.5 MTPA to 5 MTPA.

“Amidst a slowing global economy, India remains a bright spot with healthy economic momentum driven by both manufacturing and services. The government’s thrust on infrastructure and positive consumer sentiment are driving investments. Strong traction in Infrastructure, energy transition, defence and PLI schemes are driving capex. There is strong interest from global investors and corporates to participate in the long-term India growth story,” the company said.