Steel -making veteran JSW Steel released the results of the third quarter (Q3Fy25), which did not meet the market expectations. The company’s net profit fell by 70% to Rs 717 crore, which was Rs 2,415 crore in the same quarter last year. Revenue also saw a decline and it came to Rs 41,378 crore, which was Rs 41,940 crore last year. Not only this, Ebitda also declined by 22.3% and the Ebitda margin declined to 13.5%, compared to 17.1% last year. The impact of these weak results was seen in the stock market, where JSW Steel shares fell by 3.58% to Rs 898.90.
Steel production and sales growth
However, the company performed better on the production and sale front. JSW Steel’s crude steel production was 7.03 million tonnes in this quarter, which increased by 2% on a annual basis and 4% on a quarterly basis. Steel sales stood at 6.71 million tonnes, with a gain of 12% annually and 10% quarter. The company sold a record 5.99 million tonnes of steel in the Indian market, showing a gain of 14% annually and 8% quarter.
Investors disappointed due to decline in shares
JSW Steel’s shares fell on Monday due to weak results. It fell to Rs 898.90 in the morning session, today the company’s stock fell 1.43% on the BSE to close at Rs 918.90. With this decline, JSW Steel’s investors showed an atmosphere of disappointment.
Mixed opinion of brokerage
After the weak results, the brokerage house has given different opinions on JSW Steel. Nuvama rated the ‘Reduce’ on the stock citing the fall in steel prices and the increase in cost and set a target price of Rs 821. On the other hand, JM Financial gave it a ‘BUY’ rating based on the company’s cost reduction and increase in demand from government projects and increased the target price to Rs 1,160. With this price, stock can give a return of 26%. At the same time, Nomura retained the ‘BUY’ rating and gave a target of Rs 1,220 in view of better performance than expected. With this price, stock can give 32% return.