- JSW Steel’s net income for the second quarter was 16.2 billion rupees, which was lower than the estimated 17.66 billion rupees but significantly higher than last year’s 4.39 billion rupees.
- Revenue increased by 14% year-over-year to 451.5 billion rupees, surpassing the estimate of 441.71 billion rupees.
- Total costs reached 430 billion rupees, up 11% from the previous year.
- Raw material costs rose by 8.9% to 239.2 billion rupees, exceeding the estimated cost of 206.52 billion rupees.
- Expenses for purchased power, fuel, and transmission were 41 billion rupees, up 5.4% from the previous year and higher than the estimated 36.78 billion rupees.
- Other income saw a significant increase of 86% year-over-year, reaching 2.84 billion rupees.
- Operating EBITDA was 71.2 billion rupees, a 31% increase year-over-year, beating the estimate of 69.38 billion rupees.
- Net debt was slightly reduced by 0.9% quarter-over-quarter, to 791.5 billion rupees, with the net debt/EBITDA ratio at 2.97 times.
- Company shares saw a 1.8% loss following the profit miss in the second quarter.
- The company plans a 200 billion rupee capital expenditure during fiscal year 2026.
- JSW Steel anticipates a cautious US outlook due to rising tariffs, a cooling labor market, and policy uncertainties.
- The 30 million tonnes per annum slurry pipeline in Odisha is progressing well, with commissioning expected in fiscal year 2027.
- Second-quarter utilization was at 92%, up from 87% in the previous quarter, which was affected by planned maintenance shutdowns.
- The company is striving to consolidate all its US business operations under JSW Steel Netherlands B.V.
- Second-quarter capital expenditure was 31.35 billion rupees, with the first half of the year totaling 65.35 billion rupees.
- JSW Steel commissioned 885 MW of renewable power capacity by the end of the second quarter.
- The stock is rated with 20 buys, 6 holds, and 9 sells by analysts.
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JSW Steel Ltd on Smartkarma
Analyst coverage of JSW Steel Ltd on Smartkarma has been largely positive, with analysts like Trung Nguyen from Lucror Analytics highlighting the company’s strong performance amidst market fluctuations. In a recent publication, Trung Nguyen commented on the decline in UST yields and the bullish trend in equities, showcasing JSW Steel’s resilience in the current economic climate.
Rahul Jain, another analyst on Smartkarma, provided insights on JSW Steel’s strategic partnerships and impressive financial results. Jain’s reports emphasize JSW Steel’s potential for growth, with a focus on innovative collaborations like the 6mt JV with POSCO and the company’s confident guidance for the future. Despite some challenges noted in past performance, analysts remain optimistic about JSW Steel’s prospects moving forward.
A look at JSW Steel Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
JSW Steel Ltd, an integrated steel producer with manufacturing units in multiple Indian states, exhibits a favorable long-term outlook based on Smartkarma Smart Scores. The company scores high in Momentum, indicating strong market performance and investor interest in its stock. While scores for Value, Dividend, Growth, and Resilience are moderate, the high Momentum score suggests a positive trajectory for the company’s future growth and profitability.
JSW Steel Limited, known for its production of various steel products like hot rolled coils and galvanized sheets, demonstrates solid potential for sustained success in the steel industry. With a strong focus on market momentum and a diversified product portfolio, JSW Steel Ltd is positioned to capitalize on emerging opportunities and drive long-term value for its shareholders.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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