How has been the historical performance of JSW Steel?

Revenue and Profitability Trends

JSW Steel's net sales have exhibited notable growth over the past six years, rising from ₹73,326 crores in March 2020 to ₹1,68,824 crores in March 2025. The company experienced a substantial jump in sales between March 2021 and March 2022, reflecting a recovery phase post-pandemic, with net sales increasing from ₹79,839 crores to ₹1,46,371 crores. However, the fiscal year ending March 2024 saw a slight dip to ₹1,75,006 crores before settling at ₹1,68,824 crores in March 2025.

Operating profit margins have mirrored this volatility. The operating profit margin excluding other income peaked at 27.12% in March 2022, a period of robust earnings, before contracting to 13.75% by March 2025. Similarly, the profit after tax (PAT) margin declined from a high of 14.56% in March 2022 to 2.1% in March 2025, indicating pressure on net profitability in recent years.

Profit after tax figures underscore this trend, with consolidated net profit reaching ₹20,665 crores in March 2022 before falling sharply to ₹3,504 crores in March 2025. Earnings per share (EPS) followed suit, peaking at 68.65 in March 2022 and declining to 14.36 by March 2025, reflecting the impact of fluctuating market conditions and operational challenges.

Cost Structure and Operating Efficiency

The company's cost of raw materials has consistently represented a significant portion of total expenditure, rising from ₹38,865 crores in March 2020 to ₹88,324 crores in March 2025. Power costs and employee expenses have also increased steadily, reflecting expansion and inflationary pressures. Manufacturing expenses, introduced in recent years, stood at ₹9,144 crores in March 2025, indicating increased operational activities.

Despite rising costs, JSW Steel maintained a positive operating profit (PBDIT) across the years, although with considerable variation. The operating profit excluding other income was ₹22,904 crores in March 2025, down from a peak of ₹39,007 crores in March 2022. Interest expenses have increased over time, reaching ₹8,412 crores in March 2025, which has weighed on gross profit and net earnings.

Balance Sheet and Financial Position

JSW Steel's total assets have expanded significantly, from ₹1,31,820 crores in March 2020 to ₹2,40,445 crores in March 2025, driven by investments in gross block and capital work in progress. The net block of assets rose from ₹58,390 crores to ₹1,19,466 crores over the same period, signalling substantial capital expenditure and capacity enhancement.

Shareholder's funds have grown from ₹36,599 crores in March 2020 to ₹79,496 crores in March 2025, supported by increasing reserves. The book value per share improved from ₹121.59 to ₹260.64, reflecting enhanced net worth. However, the company's total debt also increased, reaching ₹95,957 crores in March 2025, up from ₹55,979 crores in March 2020, indicating a higher leverage position.

Current assets have nearly doubled from ₹36,478 crores in March 2020 to ₹70,736 crores in March 2025, with cash and bank balances rising to ₹13,285 crores. Net current assets turned positive in the latest fiscal year, suggesting improved liquidity management compared to previous years.

Cash Flow and Operational Strength

JSW Steel's cash flow from operating activities has shown resilience, with ₹20,899 crores generated in March 2025, albeit lower than the ₹26,270 crores recorded in March 2022. Investing activities consistently reflected significant outflows, indicative of ongoing capital investments, with ₹17,012 crores spent in March 2025. Financing activities have varied, with a modest outflow of ₹262 crores in the latest year, contrasting with larger outflows in prior years.

The company’s net cash inflow was ₹3,625 crores in March 2025, recovering from a negative cash flow in the previous year. Closing cash and cash equivalents stood at ₹11,655 crores, demonstrating a solid liquidity buffer to support operations and debt servicing.

Overall, JSW Steel's historical performance reflects a company that has expanded its scale and asset base substantially while navigating cyclical industry challenges. Profitability has fluctuated in line with market conditions, and the company has managed to maintain operational cash flows despite increased leverage and capital expenditure.

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