JSW Steel‘s CEO, Jayant Acharya, said the company expects to see more sales from its sustainable products in the future. JSW Steel recently reported its highest-ever sales to the renewables sector, up 130% year-on-year, driven by strong demand for its new product, Magsure. Magsure is a coated steel product with a Zinc-Magnesium-Aluminium alloy, designed to resist corrosion, making it ideal for solar installations.
JSW Steel aims to capture a 50% market share in this coated segment within a year of Magsure’s launch in India, reducing reliance on imports. The company is investing Rs 20,000 crore to focus on value-added and special product portfolios. Acharya mentioned that new capacities like the Hot Strip Mill 3 and JSW Vijayanagar Metallics Ltd will enhance their product supply.
The steelmaker is optimistic about India’s growth, expecting strong rural demand supported by connectivity and housing projects. Acharya predicted double-digit growth this year, with demand reaching 148-150 million tonnes.
In Q1FY25, JSW Steel’s net profit fell 64% due to lower sales volume and inventory losses amid declining steel prices. However, Acharya expects costs to decrease and volumes to rise in Q2, which will support EBITDA.
The company’s export focus remains at 10-15%, prioritizing the domestic market. As of June 2024, JSW Steel’s net debt to EBITDA ratio increased to 3x due to capital expenditure on expansion projects and working capital investments. Acharya said they aim to manage debt effectively, with increased volumes from new and existing operations.
JSW Steel is also working on securing raw materials to protect profits from supply-chain disruptions and price volatility. The company recently acquired a coal mining firm in Mozambique and is looking for more coking coal resources in Australia and the U.S.
Additionally, JSW Steel plans to participate in upcoming iron ore mine auctions in Karnataka and has already operationalized 13 out of 24 iron ore mines won through various auctions. The company also intends to operationalize three coking coal mines in India, producing about 2 million tonnes of clean coking coal.
