JSW Steel

“Looking ahead, we expect volumes to increase in Q3 with stronger production on the back of full production of Vijayanagar BF-3 and JVML operations.”

“We are on track to meet our production and sale guidance given for the year.”

“Last quarter, we commissioned a vacuum tank degasser at Ohio. This will enable us to produce higher grade steel, especially API grades.”

“The slurry pipeline in Odisha remains on track to be commissioned by March '27.”

“The project Phase-1 is expected to be commissioned by Quarter 3 of FY30 and Phase-2 by Quarter 1 of FY31.”

“You will also see more downstream capacity build-up as we go into the subsequent quarters.”

“Secondly, the Phase-2 does not have a hot strip mill, which JVML has.”

“The three new mines in Karnataka are now expected to be commissioned in Quarter 4 of FY27. This will provide additional capacity of around 4 million tonnes, taking the overall capacity in Karnataka to about 15 million tonnes per annum of iron ore.”

“Our four iron ore mines in Goa can provide approximately 6 million tonnes of iron ore.”

“We are working to get our coking coal washeries at Parbatpur and Dugda operational by next year. This will enable us to process domestic coking coal from our captive mines and linkages with BCCL and should provide us usable, clean coking coal of approximately 3.5 million tonnes per annum.”

“In our JJSL joint venture, we and our partner, JFE Steel, have approved expansion of steel facilities by 5 million tonnes per annum. This will take the total capacity of the plant to 9.5 million tonnes and is planned to be commissioned by FY31.”

“So, RE, we have already commissioned about more than 1,000 megawatts. We are in process of commissioning the balance 1.5 gigawatts, which has already been approved.”

“Our focus on value-added steels helped us to deliver record sales of value-added and special products of 4.11 million tonnes, up 11%.”

“The US operations together generated EBITDA of about $19 million. The Italian rail mill reported €7 million, flat versus Quarter 1.”

“Our Flat steel component is higher and will remain higher as we grow our capacities.”

“Quarter 2 EBITDA at Ohio increased quarter-on-quarter, although operations were impacted by a scheduled maintenance shutdown in September.”

“Operations at the Plate and Pipe mill in Texas were also impacted by a shutdown taken for the upgradation of the Plate mill in September. However, EBITDA was sequentially higher on higher prices.”

“Our consolidated sales were the highest at 7.46 million tonnes, growing at 13% YoY.”

“We achieved our highest ever domestic sales at 6.29 million tonnes, up by 12%, outpacing the Indian market growth.”

“Institutional sales grew by 15% YoY. Auto sector sales were the highest ever, growing by 36% YoY.”

“Domestic steel demand will remain strong and is expected to grow by 7% to 8% in FY27, driven by public and private capex, manufacturing, and automotive demand.”

“I would say that from a demand perspective, in the second half of this year, we will see continued growth of Long steel, especially after the festivities, on the back of the public capex, as well as now improving private capex.”

“Overall input costs were higher, particularly coking coal, which increased by about $10 a tonne, a bit lower than our earlier guidance of $12 to $15 for this quarter.”

“Realisations fell quarter-on-quarter, mainly on account of Long steel prices.”

“Iron ore costs are expected to be marginally higher in Quarter 3.”

“However, our expectation is that we will be able to offset the cost and add incrementally to the margin over Q2.”

“That enabled us to increase the prices, recover the prices to some extent which we lost.”

“Our net debt stands at Rs.44,482 crores, with the leverage and gearing improving further to 1.28x and 0.39x, respectively.”

“We don't believe net debt to EBITDA will go to 10x. We do recognise that during project phase, net debt to EBITDA could go slightly higher.”

“So, the current debt at JV level will progressively go down, and we have done next phase of expansion, which would mean some debt will come up.”

“you'll realise that we are still generating enough cash, which is what we would need on an average Rs.25,000 crores to Rs.30,000 crores a year, and that could largely be self-funded.”

“despite the quarter being almost Rs.6,500 crores of capex, we have actually generated free cash to bring our debt down.”

“This capex will be funded from internal accruals for most of the part, and we have a strong balance sheet and headroom available to support our growth plans.”

“JSW One online platform in which we have a 66% equity stake, saw steel volumes grow by 53% YoY, and the GMV rose by 77% to Rs.6,989 crores in Quarter 2.”

“JJSL had a sale of 0.92 million tonnes and a healthy EBITDA of Rs.1,136 crores. There was a PAT loss due to a stamp duty provision related to the BPSL transaction.”

“The stamp duty impact to JJSL has taken is Rs.276 crores.”

“We have, by design, ring-fenced JSW Steel, and we believe that will remain intact.”

“On top of it, there has been a big derailment in NMDC Chhattisgarh mines, wherein the supply has been disrupted for almost now 20-25 days, which has impacted a large chunk of iron ore availability.”

“So, Pinakin, we do factor in a normative depreciation of rupee equivalent or forward cost coverage equivalent cost over the period of capex in the cost which we announce in INR terms.”

“So, we see that JSW Utkal expansions are not really seeing much of a labor shortfall.”

“And the cost is not so material which will impact our steel overall cost in a big way.”

“in Quarter 2, JSW Steel reported consolidated revenue of Rs.54,486 crores and adjusted EBITDA of Rs.9,941 crores with an EBITDA margin of 18%.”

“PAT stood at Rs.5,359 crores. The quarter was impacted by high cost and supply chain disruptions.”

“Crude steel production and consolidated and India operations were the highest ever at 7.27 million and 7.07 million tonnes, respectively, both growing by about 5% YoY.”

“Like, in our Vijayanagar facility, we have created a reservoir, just to give you an example, which has storage capability for 300 days of operation now.”

“During H1'27, the scrap utilisation increased by more than 10% year-on-year, reducing the carbon footprint in our operations.”