India’s JSW Steel reported a bigger-than-expected rise in first-quarter profit on Friday, as easing raw material costs and firmer domestic steel prices lifted margins.

Its consolidated net profit more-than-doubled to 21.84 billion rupees ($253.52 million) for the three months ended June 30, above analysts’ average estimate of 20.39 billion rupees, as per data compiled by LSEG.

Domestic steel prices remained below year-ago levels but improved quarter-on-quarter after the government imposed a temporary 12% safeguard duty in April to curb a surge in cheap imports, mainly from China. Analysts had expected the move to lift local prices and support margins amid weak global demand.

Lower prices of iron ore and coking coal, essential raw materials for steel producers, also helped boost profitability.

JSW’s total expenses fell 3.3% to 403.25 billion rupees, driven by a similar drop in the cost of materials consumed, which typically accounts for more than half of the company’s overall expenses.

The company’s operating earnings before interest, taxes, depreciation and amortization (EBITDA) margins improved to 17.56% from 12.83%.

The company also said it expects its capex for fiscal year 2026 to be 200 billion rupees.

JSW Steel’s revenue from operations largely remained flat at 431.47 billion rupees, as weaker year-on-year steel prices offset an 9% rise in sales volumes. Analysts had expected a quarterly revenue of 425.07 billion rupees, according to data compiled by LSEG.

The company’s crude steel production for the first quarter was 14% higher than the year earlier.

JSW Steel’s shares closed flat ahead of the quarterly results.
Source: Reuters