JSW Steel has reported impressive results for the second quarter of the fiscal year 2024-2025, achieving a consolidated crude steel production of 6.77 million metric tons. This figure marks a 6% increase compared to the same period last year and a notable 7% increase from the previous quarter. The surge in production highlights JSW Steel's robust operational efficiency and commitment to meeting rising steel demand in both domestic and international markets.
Notably, the Indian operations of JSW Steel have set a new record with crude steel production reaching 6.63 million metric tons in Q2 FY25. This represents a 7% increase year-on-year and a 9% increase quarter-on-quarter. The capacity utilization for these operations stood impressively at 91%, showcasing the effectiveness of the company's production processes and infrastructure in handling increased output.
In contrast, JSW Steel's U.S. operations, specifically in Ohio, experienced a flat production rate year-on-year. However, there was a decline in output quarter-on-quarter due to maintenance shutdowns that affected production capacity. This demonstrates the challenges associated with maintaining operational continuity in overseas facilities, even as domestic operations flourish.
Breaking down the production figures, the Indian operations produced 6.63 million metric tons in Q2 FY25, up from 6.12 million metric tons in Q1 FY25 and 6.20 million metric tons in Q2 FY24. Meanwhile, JSW Steel USA reported 0.14 million metric tons, consistent with Q2 FY24 but lower than the 0.23 million metric tons produced in the previous quarter. The consolidated production figures reflect an overall positive trend, with production rising from 6.35 million metric tons in Q1 FY25 to 6.77 million metric tons.
During this quarter, JSW Steel also made significant strides in expanding its production capacity. The company successfully commissioned an expansion of 1 million metric tons per annum at its BPSL facility in Odisha, bringing the overall crude steel capacity there to 4.5 million metric tons per annum. Additionally, towards the end of Q2 FY25, JSW’s wholly-owned subsidiary, JVML, commissioned a 4.5 million metric tons per annum blast furnace at its Vijayanagar facility. The sinter plant and steel melt shop at this site are undergoing various stages of commissioning, with a progressive ramp-up expected by Q4 FY25. Once fully operational, the total crude steel capacity at Vijayanagar will increase from 29.2 million metric tons per annum to 34.2 million metric tons per annum.
In the first half of FY25, JSW Steel's production volumes continued to show growth. The Indian operations produced 12.75 million metric tons, a 3% increase compared to 12.38 million metric tons in the first half of FY24. The U.S. operations recorded a slight decline, with production at 0.37 million metric tons, down from 0.38 million metric tons in the same period last year. Overall, consolidated production for H1 FY25 reached 13.12 million metric tons, marking a 3% increase year-on-year.
These production results affirm JSW Steel's strategic initiatives and investments aimed at enhancing capacity and operational efficiency. As the steel industry continues to face various challenges, including fluctuating demand and supply chain disruptions, JSW Steel's strong performance positions it well for future growth in both domestic and international markets.
