Tag: JSW Steel

JSW Steel to consider dividend payment and raising long-term funds during upcoming board meet

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Steel on Wednesday, May 8, said that its board of directors will consider long-term fundraising on May 17, 2024.

Along with the fund raising plans, the board will also consider results for the January-March quarter along with any potential dividend announcement.

The fund raising can be done through various methods but not limited to a QIP, and will be subject to necessary approvals.

Last month, the company in its business update for the March quarter said it had achieved its highest ever annual consolidated crude steel production of 26.43 million tonnes, which was 9% higher than the previous year. JSW Steel’s annual consolidated crude steel production stood at 24.15 million tonnes in financial year 2023.

JSW Steel’s crude steel production for the March quarter stood at 6.79 million tonnes, a 3% increase from the previous fiscal. Capacity utilisation at its Indian operations level stood at 93% during the fourth quarter.

The Indian operations recorded a total output of 6.54 million tonnes in the March quarter, 3% more than the previous year’s 6.37 million tonnes.

JSW Steel shares were trading 0.54% higher at ₹862 apiece. The stock has gained nearly 14% in the past six months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Steel shares gain on highest ever annual crude steel production in FY24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Steel shares gained nearly 2% on Monday, April 8, after the company said it achieved its highest ever annual consolidated crude steel production.

In its business updates for the March quarter released on April 8, JSW Steel informed the stock exchanges that it has achieved its highest-ever annual consolidated crude steel production of 26.43 million tonne, which was 9% more than the same period in the previous fiscal. In FY23, the company’s annual consolidated crude steel production stood at 24.15 million tonnes.

The company said the crude steel production for the March quarter stood at 6.79 million tonnes, a 3% increase from the previous year. The capacity utilisation at its Indian operations level stood at 93% for the fourth quarter.

The steel producer’s Indian operations recorded a total output of 6.54 million tonnes in the fourt quarter of FY24, a 3% increase YoY compared to 6.37 million tonnes in Q4FY23.

The performance of JSW Steel USA – Ohio, both quarter-on-quarter (QoQ) and year-on-year improved in the March quarter.

In the fourth quarter, JSW Steel USA – Ohio reported a crude steel production of 0.25 million tonnes, marking a significant 19% increase from the 0.21 million tonnes recorded during the same period last year.

The company also surpassed its annual production guidance. JSW Steel said, “The Company achieved combined annual production of 26.68 million tonnes against its guidance of 26.34 Million tonnes, which is a 101% achievement.”

JSW Steel is the flagship enterprise of the diversified JSW Group, which is worth $23 billion. In India, JSW Group extends its reach across various sectors including energy, infrastructure, cement, paints, sports and venture capital.

JSW Steel anticipates elevating its total capacity to 38.5 MTPA by FY25. According to the company, its manufacturing unit in Vijayanagar, Karnataka, is India’s largest single-location steel-producing facility, currently operating at a capacity of 12.5 MTPA.

Shares of JSW Steel were trading 1.72% higher at ₹871.2 apiece on the BSE at 1 PM.

Also Read: JSW Steel shares gain on highest ever annual crude steel production in FY24

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Steel appoints Robert Simon as CEO of JSW USA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Steel has appointed Robert Simon (Rob) as the Chief Executive Officer of JSW USA, the company announced on March 6.

Simon will lead the overall business comprising slab, coil, pipe and plate production and sales at Baytown and Mingo Junction. He will report to the Boards of both the subsidiary companies of JSW Steel.

Parth Jindal, Director of JSW USA said “Rob Simon’s experience in improving and managing businesses throughout the steel industry will help us scale JSW USA to newer heights in achieving our purpose in making high quality steel products that are Made & Melted in America.”

Jayant Acharya, Joint MD and CEO of JSW Steel, said Rob joins at a crucial time as the firm continues to upgrade JSW USA operations.

JSW USA houses the USA business operations of JSW Steel, the flagship business of the diversified US$ 23 billion JSW Group.

Prior to joining JSW USA, Rob consulted with several companies including OmniTrax in Denver Colorado. He has also served on the Executive Committee and as Chairman of the Steel Manufacturers Association in the USA and as a Board Member of the American Institute of Steel Construction.

He is an industrial engineer from West Virginia University and began his career as a Production Manager, and eventually as General Manager for Oregon Brass Works.

He held several key positions at Evraz North America’s Rocky Mountain Steel Mills eventually becoming the Vice-President and General Manager and later the Executive Vice-President for the company’s Tubular Division.

“Rob’s career then expanded to Steel Dynamics, taking the role of Vice-President Structural Products, where he led the organisation through a recovery from the financial crisis re-establishing a strong presence in the company’s markets while also developing a significant presence in new markets,” JSW Steel said in its statement, adding that he later accepted the position of Chief Executive Officer for the newly formed Bayou Steel Group.

JSW Steel shares were trading 1.65% lower at ₹806.05 on BSE at 10:54 am.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Steel, JSW Steel downgraded by CLSA on three key factors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Foreign brokerage firm CLSA has reiterated its cautious stance on the Indian steel sector, citing an incremental shift in profit pool towards miners as it believes steel capacity addition is picking up pace, elevated valuations for stocks despite spread compression, among others.

Below are the three key points behind CLSA’s cautious stance—

1) Profit pool in India should incrementally move towards miners from converters

2) Unlike past, valuation have risen in the last 18 months to 1 standard deviation above their median

3) Consensus estimates are not factoring in spread compression

The global brokerage has downgraded Tata Steel to ‘Sell’ from ‘Outperform’ and slashed its target price to ₹135 from ₹145 per share. CLSA has also lowered the rating for JSW Steel to ‘Sell’ from ‘Underperform’ and cut the target to ₹730 from ₹810.

Both Tata Steel and JSW Steel ate expected to see robust volume growth due to capacity expansion in the next two years. However, the foreign brokerage predicts lower margins due to weaker spreads.

CLSA has kept an ‘Underperform’ rating but raised the target price to ₹840 from ₹820 per share for Jindal Steel and Power, considering it’s relatively better off due to margin expansion projects, even in the face of weaker industry spreads. A potential risk is a China-driven stimulus impacting its outlook.

The foreign brokerage notes a shift in steel sector dynamics, with rising valuations in the past 18 months, driven by optimistic demand outlook and Chinese stimulus expectations. Despite recent spread compression, consensus estimates for FY25-26 profitability seem inflated. China’s potential stimulus remains a key risk, impacting Indian mills based on sustained or weak demand.

It highlighted potential positive surprises in China’s policy continuity, as current spreads in China are at unsustainable lows. If the spread improvement comes from lower costs, favouring Mongolia, Indian mills might face challenges, the report adds.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s JSW Steel in talks with Australia’s Whitehaven for coal mine stake

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s JSW Steel Ltd is in talks with Australian miner Whitehaven Coal for a stake in its Blackwater metallurgical coal mine, a source aware of the discussions said on Tuesday. JSW Steel, India’s largest steel producer by capacity, is conducting due diligence and expects to get a coking coal sample from the mine this month to check specifications, the source said.

Whitehaven in January said it was exploring a potential sell-down of about 20% of Blackwater to global steel producers as strategic joint venture partners.

The miner acquired the Blackwater and Daunia mines from BHP Group in a $4.1 billion deal last October, and expects the acquisition to complete in early April.

JSW Steel could consider acquiring more than a 20% stake in Blackwater, the source said.

JSW has held initial talks with Blackwater but has yet to see the specifications of the coking coal from the metallurgical coal mine in Australia, the source said.

A spokeperson for Whitehaven declined to comment on any talks with JSW Steel but referenced mention of the joint venture sell-down in the company’s earlier statements. A JSW Steel spokesperson declined comment. JSW Steel has been scouting for coking coal assets overseas.

The company currently imports coking coal from Canada, Australia, the United States, and some grades from Russia. Last year, JSW Steel was in talks with Canada’s Teck Resources for a stake in its coking coal unit but eventually a Glencore-led consortium agreed to buy it for $9 billion.

Coking coal is emerging as a top option for companies to make a foray into, as it is used to make steel, an important component in large infrastructure and renewable projects.

India was planning to form a consortium of state-owned companies to facilitate coking coal imports to help domestic steel companies tide over shortages, Reuters reported last month.

Indian steel companies consume around 70 million metric tons of coking coal annually, and imports constitute around 85% of the country’s total requirement.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Steel achieves 7% annual growth in January crude output

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Steel, one of India’s leading steel producers, has reported a 7% year-on-year increase in consolidated crude steel production for January 2024. The company said its consolidated production reached 23.62 lakh tonnes, compared to 22.02 lakh tonnes in the same period last year.

The performance is attributed to the growth in both Indian operations and JSW Steel USA in Ohio. In January 2024, Indian operations contributed 22.86 lakh tonnes, marking a notable 6% YoY increase from 21.53 lakh tonnes in January 2023.

Simultaneously, JSW Steel USA – Ohio reported a 55% annual growth, with production surging from 0.49 lakh tonnes in January 2023 to 0.76 lakh tonnes in January 2024.

#JustIN | JSW Steel January crude steel production up 7% at 2.36 mt vs 2.20 mt (YoY) pic.twitter.com/tfd1q5ORfc

— CNBC-TV18 (@CNBCTV18Live) February 14, 2024

The consolidated production figure of 23.62 lakh tonnes in January 2024 reflects the collective strength of JSW Steel’s diverse operations. The company’s capacity utilisation at the Indian Operations level stood at an impressive 97% for January 2024.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Steel forms joint venture with Japan’s JFE Steel for grain-oriented electrical steel production in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Steel Ltd on Tuesday, February 13, announced that it has formed a 50:50 JV with Japan’s JFE Steel Corporation for the production of grain-oriented electrical steel in India.

Grain-oriented electrical steel is crucial in the manufacturing of energy-efficient transformers. Whether in laminated, wound, or punched sheet form, grain-oriented electrical steel serves as the essential core material for distribution transformers, power transformers and small transformers.

The new company JSW Electrical Steel Private Limited is being renamed as JSW JFE Electrical Steel Private Limited. The JV entity, with a planned investment of ₹5,500 crore, will be based in Bellary district of Karnataka, JSW Steel said in a stock exchange filing.

The facility aims to start production in the fiscal year 2027 and intends to expand its capacity to meet the increasing market demand for grain-oriented electrical steel in India, JSW Steel informed the stock exchanges.

This collaboration is a milestone development, marking the first company in India to have end-to-end manufacturing of grain- oriented electrical steel products.

The JV company aims to meet the rising domestic demand for grain- oriented electrical steel and make a significant contribution to the country’s energy infrastructure. A groundbreaking ceremony for this partnership took place on February 12.

The leadership teams of both companies, including Kitano, President and CEO of JFE Steel; Ogawa, Executive Vice President of JFE Steel; Sajjan Jindal, Chairman and Managing Director of JSW Steel; and Jayant Acharya, Joint Managing Directorand CEO of JSW Steel, and other senior executives, attended the event.

JSW Steel Ltd, led by Sajjan Jindal, reported a remarkable 409.28% year-on-year increase in consolidated net profit, reaching ₹2,415 crore for the third quarter ending December 31, 2023. In the same quarter of the previous year, JSW Steel recorded a net profit of ₹474 crore.

The company’s consolidated revenue from operations rose by 7.2% to ₹41,940 crore compared to ₹39,134 crore in the corresponding period of the previous fiscal year.

The net debt surged to ₹879,221 crore during the quarter, mainly due to additional investments in working capital.

At 12:10 PM, shares of JSW Steel were trading flat at ₹810.15 apiece, down 0.03%, on BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Steel registers five-fold increase in net profit at ₹2,415 crore, beats estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sajjan Jindal-led JSW Steel Ltd reported on Thursday (January 25) a 409.28% year-on-year (YoY) jump in consolidated net profit at ₹2,415 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, JSW Steel posted a net profit of ₹474 crore, the company said in a regulatory filing. A CNBC-TV18 poll estimated a profit of ₹1,745 crore for the quarter under review.

JSW Steel’s consolidated revenue from operations increased 7.2% to ₹41,940 crore as against ₹39,134 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll estimated a revenue of ₹42,225 crore for the quarter.

At the operating level, EBITDA jumped 57.9% to ₹7,180 crore in the third quarter of this fiscal over ₹4,547 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll estimated an EBITDA of ₹6,484 crore for the quarter.

#3QWithCNBCTV18 | JSW Steel reports Q3 earnings

-Net Profit at ₹2,415 cr vs ₹474 cr (YoY)

Here’s more👇 pic.twitter.com/0DuzYfNmjB

— CNBC-TV18 (@CNBCTV18Live) January 25, 2024

EBITDA margin stood at 17.1% in the reporting quarter as compared to 11.6% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll estimated a margin of 15.4% for the quarter under review.

The consolidated crude steel production for the quarter stood at 6.87 million tonne, higher by 8% quarter-on-quarter and higher by 12% year-on-year. The strong performance was driven by capacity utilisation rising to 94% during the quarter against 89% in Q2 of FY24 at the Indian operations.

Capacity utilisation for 9M of FY24 was 91%. The company had taken certain maintenance shutdowns at Indian operations during Q2 of FY24. Capacity utilisation also improved at the Ohio, USA operations due to a better demand scenario.

Steel sales for the quarter stood at 6.00 million tonne, lower by 5% quarter-on-quarter and higher by 7% year-on-year. Domestic sales at 5.27 million tonne were down by 4% quarter-on-quarter and higher by 2% year-on-year.

While volumes declined CloQ, the OEM & Industrial volumes were strong, up 8% quarter-on-quarter and 12% year-on-year, with the highest quarterly sales to OEM & Industrial customers, and automotive, renewable, and packaging segments, JSW Steel said.

Retail sales were particularly impacted during the quarter by higher imports and channel destocking. Exports at 0.55 million tonne fell 20% quarter-on-quarter on subdued global markets and constituted 9% of sales from the Indian operations.

The company’s net gearing (Net Debt to Equity) stood at 1.02x at the end of the quarter (as against 0.92x at the end of Q2 FY24), and net debt to EBITDA stood at 2.64x (as against 2.52x at the end of Q2 FY24). The net debt increased to ₹879,221 crore during the quarter, primarily due to additional investments in working capital.

Shares of JSW Steel ended at ₹816.45, up by ₹4.00, or 0.49% on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metal stocks gain up to 6% as China announces to cut bank reserve ratio from February

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Metal stocks gained up to 6% in Wednesday’s trade after China’s central bank announced that it will cut the reserve requirement ratio (RRR) for all banks by 50 basis points early next month.

Indian metal stocks, including Tata Steel, JSW Steel, Hindustan Copper, Steel Authority of India Ltd (SAIL), and Hindalco, were seen trading 3% to 6% higher in the closing session on Wednesday.

A positive sentiment around metal stocks prevailed in India, as China is the biggest consumer of metals in the world, and the central bank’s move would support its stock markets.

Tata Steel’s shares settled 3.69% higher at ₹ 134.90 per piece on NSE, while JSW Steel’s stock was up 2.37% at ₹809.10 apiece.

Hindustan Copper shares traded 5.47% higher at ₹272.85 per piece, SAIL was up 5.61% at ₹114.9 apiece, and Hindalco’s shares traded 4.68% higher at ₹566.75 apiece on NSE at closing.

People’s Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday at a press conference in Beijing that the bank would cut the reserve requirement ratio (RRR) for all banks by 50 basis points (bps), according to a Reuters report.

It is the biggest such cut since December 2021, the report added.

The move, as announced by China’s central bank governor, Pan Gongsheng, on January 24, 2024, would lead to the government freeing up a sum of 1 trillion Yuan or $139.45 billion, to the country’s stock markets. This would provide the country a cushion given the multiple turmoils faced by China’s economy.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow