JSW Steel India beats the appearance of the first quarter profit when the margin increases

JSW Steel India reports a greater increase than estimates in the first quarter profit on Friday, because it eases the cost of raw materials and the price of domestic steel which is stronger lifting margin.

The consolidated net profit is more than double to 21.84 billion rupees ($ 253.52 million) for three months ended 30 June, above the average analyst estimated of 20.39 billion rupees, according to the data compiled by the LSEG.

The price of domestic steel remains below the level of last year but improved the quarters-quarter after the government imposed a 12% protection task while in April to curb cheap import surges, especially from China. Analysts expect steps to lift local prices and support margin amidst weak global demand.

The price of lower iron ore and coal coal, essential raw materials for steel producers, also helps increase profitability.

The total cost of JSW fell 3.3% to 403.25 billion rupees, driven by a decrease in the same cost in the cost of the material consumed, which usually contributed more than half of the overall cost of the company.

The company’s operational income before interest, tax, depreciation and margin of amortization (EBITDA) increased to 17.56% from 12.83%.

The company also said they expect Capex for the 2026 fiscal year to 200 billion rupees.

JSW Steel’s revenue from the operation mostly remains flat at 431.47 billion rupees, because the price of steel-to-year-to-year is weaker in compensation for an increase in sales volume of 9%. Analysts expect quarterly income of 425.07 billion rupees, according to data compiled by LSEG.

The company’s raw steel production for the first quarter is 14% higher than the previous year.

JSW Steel shares closed flatly before the quarterly results.
Source: Reuters