JSW Steel Limited has captured the attention of investors as it announces the incorporation of a new wholly-owned subsidiary, JSW Green Steel, on February 27. This move is aligned with the company’s strategic vision for expanding its steel production capabilities, emphasizing both hot-rolled and cold-rolled steel products.
Key Highlights:
- The newly formed JSW Green Steel will operate with an authorized capital of Rs 5,00,000, divided into 50,000 equity shares of Rs. 10/- each.
- The primary objective of the subsidiary is the manufacturing of hot-rolled and cold-rolled steel products, aligning with the core business focus of JSW Steel.
Market Focus: The stock market is closely monitoring JSW Steel shares following this significant development. On Wednesday, JSW Steel stock concluded 2.49% lower at Rs 798.20, down from the previous close of Rs 818.55 on the BSE. The stock has shown resilience with a 19% return over the past year despite a 9.02% dip this year.
Financial Performance: JSW Steel reported robust earnings in Q3, with consolidated net profit soaring fivefold to Rs 2,415 crore in the December 2023 quarter. The company’s consolidated revenue from operations also witnessed a notable 7.2% year-on-year surge, reaching Rs 41,940 crore during the third quarter.
Technical Analysis: In terms of technical indicators, the stock’s relative strength index (RSI) stands at 40.8, indicating that it’s currently trading in a neutral zone. The stock is positioned below various moving averages, including the 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day averages.
Operational Highlights:
- Consolidated crude steel output experienced a significant YoY growth of over 10%, reaching 6.87 million tonnes.
- Sales volume also saw a YoY rise of 5%, reaching 6 million tonnes.
Company Outlook: JSW Steel remains on track to achieve its guided crude steel production of 26.34 million tonnes and sales target of 25 million tonnes.
Financial Metrics:
- EBITDA slipped 9% to Rs 7,180 crore in Q3 on a sequential basis.
- EBITDA margin for the December quarter stood at 17.1%.
As investors analyze these updates, the formation of JSW Green Steel marks a strategic move for JSW Steel, positioning the company for further growth and expansion in the steel production sector.
