JSW Steel profit triples to ₹5,279 crore; Odisha expansion cleared

JSW Steel’s consolidated net profit tripled year-on-year to ₹5,279 crore in the September quarter as steel sales reached a record, Economic Times Markets reported. The company also approved an investment of ₹16,150 crore to add 5 million tonnes of capacity at its Utkal facility in Odisha.

Quarterly steel sales rose 13% from a year earlier to 7.46 million tonnes, while production reached a record 7.27 million tonnes. Revenue from operations increased 21% to ₹54,486 crore. Adjusting for the deconsolidation of Bhushan Power earlier in the year, revenue growth was 31%.

Operating earnings rise as financing costs fall

Reported earnings before interest, tax, depreciation and amortisation, or EBITDA, climbed 58% year-on-year to ₹10,120 crore. Adjusted EBITDA increased 39% to ₹9,941 crore. The adjusted measure excludes foreign-exchange gains or losses on long-term borrowings, net of intercompany receivables.

The adjusted EBITDA margin improved to 18.3% from 17.2%, while adjusted EBITDA per tonne rose 24% year-on-year to ₹13,329. Finance costs fell 34% to ₹1,602 crore, and depreciation and amortisation expenses declined 14% to ₹2,200 crore.

Expansion approvals and first-half investment

Alongside the Utkal project, JSW Steel approved other projects, including capacity expansion at JSW JFE Steel. These are investment approvals, rather than additions to capacity already in operation.

Capital expenditure totalled ₹11,136 crore in the first half of the year, including ₹6,266 crore in the September quarter.

Leverage ratios also eased. Consolidated net debt to equity stood at 0.39 times at the end of September, compared with 0.42 times at the end of June. Net debt to EBITDA declined to 1.28 times from 1.46 times over the same period.

Despite the earnings increase, the shares ended the results-day session on the BSE at ₹1,187, down 2.6% from the previous close. The company had released its earnings during market hours.