Annual Audited Financial Results for 31.03.2025
Awaiting price reaction for this filing.
JSW Steel reported a sharp fall in profits for FY25 despite revenue holding up. Standalone revenue from operations dipped to ₹1,27,702 cr from ₹1,35,180 cr, while net profit fell to ₹5,837 cr from ₹8,041 cr. Operating EBITDA margin compressed to 14.39% from 16.26% a year ago. Exceptional items of ₹1,304 cr include a ₹1,454 cr gain from subsidiary Piombino Steel's share buyback, offset by a ₹3,762 cr impairment on loans to US and Mauritius subsidiaries and a ₹342 cr provision on the Jajang iron ore mine. Consolidated net profit dropped steeply to ₹3,491 cr from ₹8,973 cr. The board has recommended a dividend of ₹2.80 per share. Operating cash flow improved to ₹16,891 cr from ₹5,449 cr.
Auditors SRBC & Co issued a qualified opinion on both standalone and consolidated results due to uncertainty around the ₹9,215 cr exposure to Bhushan Power & Steel via subsidiary Piombino Steel, after the Supreme Court rejected JSW's resolution plan and ordered BPSL liquidation. Shareholders should expect negative short-term sentiment given the profit decline, margin compression, and the unresolved BPSL overhang, though strong operating cash flow and the dividend provide some support.