JSW Steel’s Crude Steel Production Up 5% YoY; US Operations Down 22%

JSW Steel Ltd. announced a 5% increase in its consolidated crude steel production for November, reaching 23.23 lakh tonnes. This is compared to 22.04 lakh tonnes in the same period last year.

Strong Performance in India

The company’s Indian operations saw a significant rise in production, up by 7%. JSW Steel produced 22.53 lakh tonnes in India, achieving a 94% capacity utilization.

Decline in US Operations

However, the company’s operations in the US faced a setback. JSW Steel USA-Ohio reported a 22% drop in production, producing only 0.70 lakh tonnes. This is down from 0.90 lakh tonnes last year.

Recovery from October Decline

The November growth follows a slight production decline in October. The decrease was mainly due to maintenance at one of the Dolvi blast furnaces. Indian operations saw a 2% drop in output and a reduced capacity utilization of 89%.

Financial Challenges in Q2 FY25

In contrast to the production increase, JSW Steel faced a sharp financial decline. For Q2 FY25, the company reported an 85% fall in profit, dropping to ₹404 crore. The loss was due to a ₹342 crore provision for the closure of the Jajang Iron Ore Block.

Stock Performance and Analyst Ratings

Despite the financial challenges, JSW Steel’s stock rose by 0.81% to ₹1,011.90 on the NSE. Over the past year, the stock gained 19.74% and has risen 15.30% year-to-date. Analysts remain optimistic, with 18 out of 32 analysts maintaining a ‘buy’ rating.