Jayant Acharya, the Joint Managing Director and CEO of JSW Steel sees coking coal prices rising by $25 to $30 per tonne in the third quarter.

Share Market Live

NSE

He expects product price increases and higher volumes with an improved mix of value-added products in the portfolio to help counter the cost increases.

Value-added products now contribute nearly 62% to the portfolio.

“...we should be able to offset the increase in coking coal prices with the price benefit, which we had in the last two months and some increase in the month of October. Coking coal prices, I think, on an absolute number may go up by $25 to $30 per tonne in Q3,” he told CNBC-TV18.

Indian steel producers are contemplating price hikes

across various alloy grades due to escalating import expenses related to coking coal, primarily from major supplier Australia, disclosed officials from four domestic mills who requested anonymity due to media restrictions.

These officials anticipate that steel mills may institute price increases ranging from $25 to $50 per metric tonne by December.

Acharya expects EBITDA (earnings before interest, tax, depreciation and amortisation) to improve on an absolute basis

"Over the last three quarters, our EBITDA per tonne has been consistently strong. While we anticipate global headwinds, India continues to perform exceptionally well, driven by government infrastructure spending, robust manufacturing, and strong consumption. We have the tools to achieve growth in terms of volume, which will positively impact our absolute EBITDA."

focus-economics.com

JSW Steel reported a consolidated profit of ₹2,773 crore for the quarter concluding in September, marking a stark turnaround from a consolidated net loss of ₹848 crore during the same period the previous year. A CNBC-TV18 survey had projected a net profit of ₹2,525 crore for the company.

Private steel manufacturer JSW Steel disclosed a consolidated net profit of ₹2,773 crore for the July-September quarter, attributing this achievement to augmented revenue and exceptional gains. In the second quarter of the preceding fiscal year, the company had incurred a loss of ₹915 crore.

The company's total income escalated to ₹44,821 crore in the second quarter of the current fiscal, as opposed to ₹41,966 crore a year ago. JSW Steel reported consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) at ₹7,886 crore. The operating margin showed substantial growth, expanding by 1,350 basis points to 17.7%, compared to 4.2% a year earlier.

JSW Steel's Baytown operations are expected to maintain their strong performance, thanks to favorable market conditions and efficient operations. However, ongoing challenges are anticipated for the company's Ohio operations, potentially necessitating a strategic reevaluation.

Shares of JSW Steel are flat in today's trade at ₹767.45. The shares have lost a little over 1% in the past month.

Follow our live blog for more stock market updates

(Edited by : Shweta Mungre)