JSW Steel Reports Over 61% Decline in FY25 Net Profit Despite Q4 Recovery
Mumbai | May 23, 2025: In a financial blow reflective of persistent sectoral headwinds, JSW Steel on Friday reported a steep 61.1% year-on-year (YoY) drop in net profit, closing the fiscal year 2024–25 with Rs 3,491 crore in profit, compared to Rs 8,973 crore in FY24.
The fall comes despite a moderate recovery in the fourth quarter (Q4 FY25), signaling some operational resilience amid broader industry challenges.
Q4 FY25: A Glimmer of Recovery
For the quarter ending March 31, 2025, JSW Steel recorded a net profit of Rs 1,501 crore, marking a 13.54% increase from Rs 1,322 crore in the corresponding quarter of FY24.
However, revenue from operations during Q4 declined nearly 3% YoY to Rs 44,819 crore, reflecting continued pressure from weak domestic demand and rising competition from cheaper steel imports, particularly from China and Southeast Asia.
Full-Year Performance: Margins Improve Despite Profit Slide
For the full fiscal year:
- Revenue from operations stood at Rs 1,68,824 crore, down 3.53% from Rs 1,75,006 crore in FY24.
- Total expenses marginally increased by 0.36% to Rs 1,63,641 crore.
- Operating EBITDA for Q4 improved to Rs 6,378 crore, up from Rs 6,124 crore in Q4 FY24.
- EBITDA margin rose to 14.23%, compared to 13.2% last year, aided by lower input costs and better cost optimization.
Dividend and Fundraising
Despite the annual earnings dip, JSW Steel’s board declared a final dividend of Rs 2.8 per equity share for FY25, rewarding shareholders amid uncertain market dynamics.
The board also approved a fundraising plan of up to Rs 14,000 crore via a mix of non-convertible debentures (NCDs) and equity or convertible securities. The capital will be deployed to support the company's long-term growth strategy and expansion goals.
Market Response
The company announced its results after market hours on May 23. Earlier in the day, JSW Steel shares closed slightly higher at Rs 1,007.90 on the National Stock Exchange (NSE), indicating investor confidence in the company’s long-term fundamentals.
Sector Outlook
The Indian steel industry continues to navigate through volatile global commodity prices, sluggish infrastructure spending, and import pressures. Analysts expect margins to remain under pressure in the short term, but strategic fundraising and efficiency gains could help leading players like JSW Steel weather the turbulence.
