JSW Steel Production Falls 1% To 22.81 Lakh Tonne In October

JSW Steel Ltd.'s consolidated crude steel production declined 1% on the year in October due to maintenance activity. The company produced 22.81 lakh tonne in the month of October, compared to 23.12 lakh tonne in the same period a year ago, according to an exchange filing on Tuesday.

The Indian operation fell 2% to 21.99 lakh tonne in October from 22.36 lakh tonne in the year-ago period. The capacity utilisation at Indian operations stood at 89% in October due to temporary maintenance activity at one of the blast furnaces in Dolvi. JSW Steel USA-Ohio produced 0.82 lakh tonne in October, compared to 0.76 lakh tonne in the same month the previous year.

JSW Steel announced an 85% fall in its profit to Rs 404 crore for the second quarter of fiscal 2025. However, it's important to acknowledge that an expectational item worth Rs 342 crore caused the fall in net profit. This item is a provisional amount that JSW Steel set aside as it received approval for final mine closure and surrender of the Jajang Iron Ore Block. The provision amount pertains to the underlying carrying value of assets, inventory, and site restoration liability.

The company's revenue fell 11% to Rs 39,684 crore due to the negative impact of lower steel prices and a 3% annual downtick in steel sales at 6.13 million tonne.

JSW Steel's operating Ebitda fell 31% annually to Rs 5,437 crore. The fall in steel realisations was largely offset by lower costs. The Ebitda per tonne for the company stood at Rs 8,869, higher than brokerage estimates.

Shares of JSW Steel rose as much as 5.03% during the day to Rs 1,003 apiece on the NSE. It closed 4.67% higher at Rs 999.50 apiece. This compares to a 0.90% advance in the NSE Nifty 50 Index. It has risen 32.56% in the last 12 months and 13.89% year-to-date.

Out of 32 analysts tracking the company, 18 maintain a 'buy' rating, six recommend a 'hold,' and eight suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 0.7%.