During the quarter, company registered operating EBITDA of 5,437 crore, with an EBITDA margin of 13.7%. The EBITDA reduced by 1% QoQ as a sharp fall in steel realisations was largely offset by lower costs.
Consolidated crude steel production for the quarter stood at 6.77 million tonnes, higher by 7% YoY and QoQ. Capacity utilization at the Indian operations improved to 91% during the quarter, post completion of planned maintenance shutdowns at Dolvi and BPSL in the last quarter.
Steel sales for the quarter stood at 6.13 million, lower by 3% YoY and flatish QoQ. Domestic sales at 5.57 million tonnes were higher by 5% QoQ and by 1% YoY.
Sales volumes to the institutional segment increased by 12% YoY. However, sales to Retail segment fell by 14% due to elevated imports. Exports at 0.39 million tonnes, lower by 43% YoY and 34% QoQ due to elevated Chinese exports adversely affecting global markets. Exports constituted 7% of sales from the Indian operations for Q2 FY25 as against 10% of sales in Q1 FY25.
The company’s net gearing (net debt to equity) stood at 1.04x at the end of the quarter (as against 0.97x at the end of Q1 FY25), and net debt to EBITDA stood at 3.51x (as against 3x at the end of Q1 FY25).
On half year basis, the company’s net profit declined 75.56% to Rs 1,271 crore on 4.80% fell in total revenue to Rs 82,627 crore in H1 FY25 over H1 FY24.
Meanwhile, on August 3, 2024, the company announced the surrender of the Jajang Iron Ore mine located in the Keonjhar district of Odisha due to operations being economically unviable.
Further, on October 9, the Indian Bureau of Mines approved the final mine closure plan. Following this approval, the company submitted an application for the surrender of the mining block. The company has recognized a net provision of Rs 342 crore related to the underlying carrying value of the assets, including inventory and site restoration liability, which has been disclosed as an exceptional item in Q2 FY24.
JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company.