JSW Steel Ltd. has reported a 5% year-on-year growth in its consolidated crude steel production for November, reaching 23.23 lakh tonnes, compared to 22.04 lakh tonnes in the same month last year. This rise follows a challenging October, which saw a 1% drop in production primarily due to maintenance activities at one of the Dolvi blast furnaces.
The company’s Indian operations showed particularly strong performance, with a 7% increase in output, reaching 22.53 lakh tonnes in November. This was achieved with an impressive capacity utilisation rate of 94%, reflecting the efficiency of its domestic facilities. However, the US operations under JSW Steel USA-Ohio faced difficulties, reporting a 22% decline in production. Output from the US plant stood at 0.70 lakh tonnes, down from 0.90 lakh tonnes in November 2023. The overall growth in November is a positive sign for JSW Steel, especially after the operational setbacks experienced in October. The company had faced a 2% decline in its Indian operations that month, coupled with reduced capacity utilisation, which stood at 89% due to the aforementioned maintenance work. Despite these challenges, the November results demonstrate resilience in the face of operational disruptions.
In terms of financial performance, JSW Steel had a difficult Q2 FY25, with its profit plummeting by 85%, amounting to ₹404 crore. This sharp decline was mainly attributed to a ₹342 crore provision related to the closure of the Jajang Iron Ore Block. Additionally, the company’s revenue for the quarter fell by 11%, totalling ₹39,684 crore, driven largely by weaker steel prices and a 3% drop in steel sales, which totalled 6.13 million tonnes. Despite these financial challenges, JSW Steel’s stock price has shown resilience. Shares rose by 0.81% to ₹1,011.90 on the NSE, outperforming the broader Nifty 50 Index. Over the past 12 months, the stock has gained 19.74%, and it has risen by 15.30% year-to-date. Analysts remain largely optimistic about the company’s future prospects, with 18 out of 32 analysts covering the stock maintaining a ‘buy’ rating, despite a potential 2.3% downside based on a 12-month consensus price target.
