JSW Steel, a leading player in the steel industry, has announced a remarkable surge in its consolidated crude steel production for the third quarter of FY24. The company reported a robust output of 6.87 million tonnes, marking an 8% increase over the previous quarter and an impressive 12% rise compared to the same period last year.
This surge in production is attributed to a significant uptick in infrastructure projects, which bolstered the demand for steel. The company noted that its capacity utilization in Indian operations stood at a commendable 94% for the third quarter, as detailed in a filing made to the Bombay Stock Exchange (BSE) on January 9. This news arrives amidst Crisil’s recent projection that the steel sector in India is on track to achieve its third consecutive year of double-digit growth, estimated at 11-13% year-on-year for the current fiscal year.
JSW Steel reported a 9% year-on-year increase in crude steel production in its Indian operations, reaching 6.63 million tonnes. Sequentially, the production witnessed a notable 7% rise compared to Q2FY24 figures, which stood at 6.20 million tonnes. The company’s USA-Ohio operations also showcased an exceptional performance, recording a staggering 191% year-on-year increase in crude steel production, reaching 0.24 million tonnes. Sequentially, there was a commendable 76% rise compared to the previous quarter, which reported 0.14 million tonnes in Q2FY24.
Despite this substantial surge in production, the company’s shares remained relatively stable in afternoon trade.
In financial terms, JSW Steel reported a consolidated total income of Rs 44,821 crore in the September quarter, compared to Rs 41,966 crore for the same period last year. In the preceding second quarter, consolidated crude steel production was reported at 6.34 million tonnes, reflecting a marginal 1% decrease quarter-on-quarter but a notable 12% increase year-on-year.
The impressive surge in steel production by JSW Steel, both in its Indian and USA-Ohio operations, not only underscores its strong operational performance but also signifies a positive trajectory for the steel sector in India. This remarkable growth aligns with the sector’s projected upward trajectory, further solidifying JSW Steel’s position as a key player in the global steel industry.
