Mumbai: JSW Steel anticipates an improvement in its margins during the second half of FY25 as steel prices rebound from multi-year lows recorded in September, while the company’s cost-saving strategies continue to show positive results, according to a senior executive. Jayant Acharya, the joint managing director of the steelmaker, mentioned in an interview that additional capacity from upcoming expansion projects will also boost sales and help distribute fixed costs over a larger base, further enhancing margins. JSW Steel is projecting an increase of approximately 6 million tonnes per annum (mtpa) in capacity for the latter half of the fiscal year—1 mtpa from its Bhushan Power and Steel unit and 5 mtpa from its Vijaynagar steelworks in Karnataka. This will increase its total domestic capacity to slightly more than 34 mtpa. The company also anticipates launching four new iron ore mines in the second half of the year. According to the leading executive, this will enable the company to decrease raw material expenses and cut logistics costs since the mines will be situated nearer to the company’s mills. The new mines will increase the company’s in-house sourcing of iron ore to 41%. Additionally, Sajjan Jindal’s JSW is shifting its large electric vehicle investment to Maharashtra. The steel producer anticipates a decrease in its coking coal expenses by $653-25 per tonne in the second half of the year, thanks to expectations of lower prices and a more economical blend they have been testing. “We are optimistic for H2,” Acharya stated. The second half will experience greater seasonal demand, and our increased capacities are also perfectly timed. This will result in a significant increase in volume and a clear improvement in Ebitda. Ebitda, which means earnings before interest, tax, depreciation, and amortization, is a measure of a company’s profitability. In the second quarter, the steelmaker’s Ebitda fell by 31% compared to the same period last year, reaching ₹228,211 per tonne. This decline was attributed to a decrease in steel prices, which dropped to nearly four-year lows in September because of competition from low-cost imports.
