Q3FY24 vs Q2FY24 steel production analysis of JSW Steel

JSW Steel, a cornerstone of the USD 23 billion JSW Group, continues to chart a robust growth trajectory, showcasing commendable performance in the Q3FY24 and Q2FY24 periods. The consolidated crude steel production for Q3FY24 reached 6.87 million tonnes, reflecting a substantial YoY growth of 13%. However, a marginal 3% QoQ dip is observed, primarily attributed to scheduled shutdowns at Indian operations and lower capacity utilization at USA-Ohio due to prevailing market conditions.

Comparative Production Analysis: Q3FY24 vs Q2FY24 

Let’s delve into a detailed comparison of steel production figures for Q3FY24 and Q2FY24:

The Q3FY24 figures indicate a robust growth trajectory, with consolidated production standing at 6.87 million tonnes, an 8% increase compared to Q2FY24. This growth is spearheaded by a notable 76% QoQ surge in the JSW Steel USA – Ohio facility, showcasing the company’s adaptability to market dynamics.

Strategic Mergers Impact

The merger of the Joint Venture, Creixent Special Steels Limited, and its subsidiary JSW Ispat Special Products Limited (JISPL) with JSW Steel, effective since 31st July 2023, has contributed positively to the consolidated production figures. This strategic move adds depth to JSW Steel’s operational portfolio, paving the way for sustained growth in the coming quarters.

Financial Overview 

JSW Steel’s consistent growth over the years has positioned it as India’s leading integrated steel company, with a current capacity of 29.7 MTPA in India and the USA. The recent report indicates that the company’s next phase of growth in India aims to achieve a total capacity of 38.5 MTPA by FY25.

Sustainability Initiatives 

Beyond financials, JSW Steel’s commitment to sustainability stands out. Recognized as a Steel Sustainability Champion by the World Steel Association, the company has set ambitious goals aligned with India’s climate change commitments. JSW Steel aims to reduce CO2 emissions by 42% from its steel-making operations, achieve net zero CO2 emissions at its subsidiary JSW Steel Coated Products Ltd by 2030, and power steel-making operations entirely with renewable energy by 2030.

Global Recognition and Awards 

JSW Steel’s dedication to excellence has garnered several accolades, including its ranking as the 8th among the top 35 world-class steelmakers by World Steel Dynamics in December 2023. The company’s inclusion in the World Dow Jones Sustainability Index and Emerging Markets during 2023, along with its consistent presence in S&P Global’s Sustainability Yearbook, underscores its commitment to responsible business practices.

Conclusion 

JSW Steel’s Q3FY24 and Q2FY24 performance exemplifies its resilience and adaptability in a dynamic market. The strategic merger has bolstered its position, contributing to impressive production figures. As JSW Steel continues its growth journey, marked by sustainable practices and global recognition, investors and stakeholders can look forward to sustained value creation. The company’s commitment to reducing its carbon footprint and leading the energy transition positions JSW Steel as a key player in the global steel industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.