JSWSTEEL · Metals & Mining
JSW Steel Ltd. reported revenue of ₹39,684 cr for July to September 2024, −11.0% on the year and −7.6% on the quarter.
Operating profit (EBITDA) was ₹5,375 cr, a margin of 13.5%, −409 bps on the year and +74 bps on the quarter. Over the last 6 quarters the margin has ranged from 12.8% to 17.6%, averaging 15.1%. Operating costs grew −6.6%, faster than revenue at −11.0%, so operating profit grew less than sales.
Net profit was ₹404 cr, −85.4% on the year and −53.4% on the quarter, with earnings per share of ₹1.80. Profit before other income, one-offs and tax grew faster, at −74.0%; other income, one-offs or tax held the headline back. The tax rate was 49% against an average of 33% over the previous 5 quarters, which weighed on profit this quarter.
Metal margins move with the spread between product prices and coal and ore costs, so large quarterly swings are normal here and say more about prices than about the business. The quarterly statements do not carry volumes, realisation per tonne and the cost of coal and ore; those come with the filing read.
On earnings per share of ₹20.45 over the last four quarters, the stock at ₹1,214.50 trades at 59.4 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow filed with this quarter, the auditor's review, segment results, one-off items line by line and what management said on the call.
No check fired. That is a statement about the checks below, not a verdict on the company.
Operating margin fell sharply on the year. Pricing, input costs, or mix?
Expected for Metals and mining: Commodity margins move with prices each quarter; read EBITDA per tonne instead. EBITDA margin 13.5%, −409 bps on the year (+74 bps on the quarter).
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹44,584 cr | ₹41,940 cr | ₹46,269 cr | ₹42,943 cr | ₹39,684 cr | ₹41,378 cr | ₹44,819 cr | ₹43,147 cr | ₹45,152 cr | ₹45,991 cr | ₹51,180 cr | ₹47,364 cr |
| YoY | — | — | — | +2% | −11% | −1% | −3% | +0% | +14% | +11% | +14% | +10% |
| EBITDA margin | 17.6% | 17.1% | 13.0% | 12.8% | 13.5% | 13.5% | 13.7% | 17.3% | 15.6% | 13.9% | 16.5% | 19.6% |
| Other income, % of PBT | 18% | 6% | 12% | 12% | −24% | 4% | 11% | 11% | 12% | −18% | 81% | 12% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 40% | 26% | 34% | 37% | 49% | 39% | 13% | 28% | 30% | — | 14% | 24% |
| Net profit | ₹2,773 cr | ₹2,450 cr | ₹1,322 cr | ₹867 cr | ₹404 cr | ₹719 cr | ₹1,501 cr | ₹2,209 cr | ₹1,646 cr | ₹2,410 cr | ₹19,243 cr | ₹4,696 cr |
| YoY | — | — | — | −64% | −85% | −71% | +14% | +155% | +307% | +235% | +1,182% | +113% |
| Core profit YoY | — | — | — | −61% | −74% | −64% | −13% | +124% | +111% | +52% | +169% | +100% |
| EPS | ₹11.29 | ₹9.88 | ₹5.31 | ₹3.46 | ₹1.80 | ₹2.93 | ₹6.15 | ₹8.93 | ₹6.64 | ₹8.75 | ₹66.94 | ₹19.02 |
| Flags | · | · | · | 1 | 1 | 1 | 2 | 1 | 1 | 2 | 3 | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
JSW Steel Ltd. reported revenue of ₹39,684 cr (−11.0% on the year) and net profit of ₹404 cr (−85.4% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved −74.0% on the year, against −85.4% for reported profit.
None of the 6 checks that could run raised a question.
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