JSW Steel starts FY26 on a high but remains cautious
Mumbai: JSW Steel Ltd reported better profit than expected for the June quarter directed by a lower smelling coal cost, which is an important component as well as higher production and sales volume.
The first quarter of the steel manufacturer LaAccording to the company’s applications for change, 2,209 Crore from 867 RS in the same quarter of the previous year. An important reason for this is to improve steel prices because the government’s 12% protection to protect the industry from cheap steel imports from China.
Donda Capital Analyst Suman Kumar, “Steel prices quarter prices increased, sales volumes vijayaagar expansion project has increased due to the increase in the increase,” he said.
However, the increase in steel prices is a temporary phenomenon, and the administration believes that the government should do more to provide more profitability for Indian steel manufacturers.
JSW Steel, the largest steel manufacturer in India, reported consolidated income La43,147 CRORE FOR Nisan-June Neighborhood, LaA year ago 42.943, LaAverage 42.790 Crore projection of 23 analysts who participated in the survey by Bloomberg.
The JSW steel benefited from the lower raw material cost, which was partially stabilized by higher fuel consumption due to the planned explosion oven. Mining copyrights also helped to reduce the total costs by decreasing.
In the first quarter, interest, taxes, depreciation and depreciation (EBITDA) earnings increased by 37% annually La7,576 Crore.
Steelmaker continued production and sales guidance for 2025-26, 30.5 million tons and 29.2 million tons, respectively.
JSW Steel was spent La3,400 crore, estimated capital expenditure in June quarter La20,000 Crore for FY26. For FY25, JSW Steel initially predicted a Capex. La20,000 Crore before downloading La16,000 crore. This revised target missed, only expenses La14,656 Crore in FY25.
The steel manufacturer increased by 14% for the June quarter compared to a year ago and reported 7.26 million tons of consolidated production. The sales volume increased by 9% to 6.69 million tons.
Seasonal weakness, optimistic appearance
In an interaction with analysts after earnings, JSW Steel’s management said that the sales volume of the company will increase in the second quarter as the maintenance closures are completed. In addition, a second converter is assigned to the JSW Vijayaagar Metallics Ltd, which will help reduce the cost of production.
However, in the second quarter due to monsoon rains, demand may weaken.
Kumar, “2nd quarter management, monsoon due to seasonal weakness in volumes waiting to see. Steel prices fall, the company, the price decrease in the partially stable smelling coal prices await more. Long -term appearance remains optimistic,” he said.
JSW Steel’s management, the government’s task of protection on steel imports, said he expects a positive decision. On April 21, the government implemented 12% protection for 200 days.
Although finished steel imports are moderate, exports have fallen and India continues to be net importer.
JSW Steel’s management expects low -priced imports emphasized by changes in global flow flows due to increasing tariff uncertainties.
The management also said that although there has been some decrease in steel production in China in recent months, the high exports of Chinese steel continued to be a difficulty for India’s steel industry.
JSW Steel also said that on June 30, Bhushan Power and Steel Ltd, based on legal opinion, and continued consolidation with the results of BPSL’s financial consequences.
Supremecourt, as MINT reported on May 23, after scrapping the solution plan for the Supremecourt bankruptcy company, the BPSL is eliminated, the steel manufacturer expects to be compensated adequately. JSW Steel petitioned a review of the APEX Court’s decision.
JSW Steel closed the shares of BSE mostly on Friday without changing LaEach one 1,034.40. The stockmark Sensex index increased by 4.14%, while the stockmark Sensex index has gained 14.24% so far this year.
