JSW Steel posts ₹2,773 crore profit, cites infra thrust

livemint.com:

₹2,773 crore net profit for the September quarter against a net loss in the same quarter last fiscal. The Mumbai-based steel manufacturer reported a 6.71% year-on-year increase in its consolidated revenue from operations to ₹44,584 crore. Consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) stood at ₹7,886 crore, with an Ebitda margin of 17.7%.

JSW Steel attributed the strong growth to the government’s thrust on infrastructure and positive consumer sentiment that has been driving investments. The country, it said, has strong traction in infrastructure, energy transition, defence and PLI schemes that are driving capex. “Despite the escalation of wars in the Middle East and Europe, the steel demand won’t be hampered much, given the construction period is about to begin (September-March).

India remains in the bright spot, but the momentum must be maintained going forward," said A.S. Feroz, former chief economist in the ministry of steel. “Only a significant slowdown in the US economy might affect the demand." India is the world’s second-largest producer of crude steel, with an output of 125.32 million tonnes of crude steel and 121.29 mt of finished steel in FY23.

India’s steel production is estimated to grow by 4-7% to 123-127 mt in FY24. As per data published by Steel Mint, India’s crude steel production rose by 14% in the first half of FY24 to almost 70 mt as compared with 61 mt during the same period last fiscal year. The company reported domestic sales of 5.49 mt, up 8% y-o-y, mostly driven by strong domestic demand and improvements in the product mix.