JSW Steel reported a 3 per cent quarterly fall in revenue in Q4 due to weak steel prices, while net profit saw a 15.7 per cent rise on year mainly due to lower tax outgo compared to year ago.

The steelmaker reported net profit of ?1,503 crore on revenue of ?44,819 crore. It also had a one-time expense of ?44 crore, due to tax on assets bought by its green steel unit.

During the quarter there was a surge in cheap steel imports from countries such as China, Japan and South Korea and many of the steelmakers have been hit by weak prices domestically. About a month back, the Indian government reacted by imposing a 12 per cent anti-anti dumping duty on such imports.

The company also said that it did not see any impact of the Supreme Court order quashing JSW Steel’s resolution plan for Bhushan Power & Steel. It said it had carried out a “recoverability assessment,” and “concluded that the recoverable amount is sufficient enough to cover the carrying values in the books and hence no provision is required to be made for the investments in and loans” given to its subsidiary through which it had invested in Bhushan Power.

On Friday, the board also recommended a final dividend of ?2.80 per share for the ended 31st March 2025. 

Consolidated crude steel production for the fourth quarter of FY 25 stood at 7.63 million tonnes, higher by 12 percent year-on-year. The capacity utilisation at the Indian operations was 93 percent during the quarter. The consolidated steel sales for the fourth quarter stood at 7.49 million higher by 11 per cent.

In an investor presentation, the company said it mopped up its highest ever domestic sales which were up by 15 per cent during FY 25.

Providing guidance for FY 26, the company stated that its crude steel production is expected to increase to 30.5 million tonnes and sales are expected to rise to 29.2 million tonnes.

Fund raising

The steelmaker on Friday approved a fundraising plan of up to ?19,000 crore.

It approved raising of “long-term resources” of up to ?7,000 crore through issuance of Non-Convertible Debentures (NCDs) with warrants convertible into equity shares. An additional amount of up to ?7,000 crore will be raised via issuance of equity shares and/or convertible securities (other than warrants.)

Separately, the board also approved raising up to ?5,000 crore through secured or unsecured, redeemable, NCDs by way of private placement and/or by way of public issuance in one or more tranches in the domestic market. The proceeds will be used to refinance short-term borrowings, meet capex and working capital needs and for general corporate purposes. 

Source: The Hindu Business Line 

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