JSW Steel’s stock fell 2.70% to ₹907.25 on the NSE as of 9:52 AM, following the release of its disappointing Q3 FY25 results. The company’s net profit plunged 70.7% year-on-year to ₹719 crore, compared to ₹2,450 crore in the same quarter last year. Revenues marginally dipped by 1.3% YoY to ₹41,738 crore, highlighting weaker operational performance despite higher volumes.
The company reported a 22.3% YoY decline in EBITDA to ₹5,579 crore, while EBITDA margins narrowed to 13.5% from 17.1% a year ago, reflecting lower blended realizations and rising costs. Standalone EBITDA per tonne dropped to ₹7,870, down from ₹8,760 in Q2 FY25 and ₹11,100 in Q3 FY24. Although volumes increased 8% YoY and costs per tonne fell 7%, the overall financial performance remains under pressure.
Brokerage firm Citi’s has maintained a “Sell” rating on JSW Steel, with a target price of ₹715, citing the company’s weaker standalone EBITDA and ongoing margin compression. Current net debt to EBITDA stands at 3.6x, raising concerns over leverage levels.
The weak earnings, coupled with Citi’s bearish outlook, have weighed on the stock. Despite ongoing recovery efforts in Indian subsidiaries, the broader outlook for JSW Steel remains cautious in the near term.
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