JSW Steel Update: ₹80 Crore Reddit Windfall, Q4 Profit Rise & Bhushan Power Developments
⚠️ Disclaimer
I’m not a SEBI-registered financial advisor. This blog is informational only and not investment advice.
1. 🤑 Reddit’s ₹80 Crore JSW Steel Windfall
A Reddit user discovered old Jindal Vijayanagar Steel (JSW’s predecessor) share certificates purchased by his father in the 1990s for ₹1 lakh—now worth approximately ₹80 crore!
On X (formerly Twitter), Sourav Dutta shared the emotional story:
“Guy on Reddit discovered JSW shares bought by his dad in the 1990s for ₹1L. Worth ₹80 Cr today. Power of buy right, sell after 30 yrs.” indianexpress.com+11livemint.com+11ndtvprofit.com+11
One Reddit user analyzed the growth, noting that 5,000 JVSL shares became 800,000 JSW shares post-merger and splits—worth around ₹80.4 crore today, plus dividends. reddit.com
Takeaway for readers forJSW Steel Update : A testament to the power of long-term holding, compounded growth, bonuses, and stock splits.
2. 📊 Q4 FY25 Performance Snapshot
JSW Steel Update a 16% YoY rise in consolidated net profit to ₹1,503 crore, with revenue falling 3% to ₹44,819 crore. EBIT DA margins strengthened to 14.2%, supported by cost control and record domestic sales. ainvest.com+1economictimes.indiatimes.com+1
Key Highlights of JSW Steel Update:
- Domestic volumes up 30% YoY to 6.72 million tonnes ainvest.com
- Board approved dividend distribution and fundraising via equity/NCDs reddit.com+11ainvest.com+11business-standard.com+11
Why it matters: Profit growth with cost discipline showcases operational strength, though softer revenue signals margin pressure.
3. ⚖️ Bhushan Power Ruling & Strategic Consequences
The Supreme Court halted the liquidation of Bhushan Power & Steel (BPSL), previously acquired by JSW in a ~₹19,700 crore deal—their acquisition was rejected by the court in March, pending review. economictimes.indiatimes.com+9reuters.com+9indianexpress.com+9
Further, JSW faces a potential reversal of ₹7,000 crore tax benefits, tied to the now-scrapped acquisition. economictimes.indiatimes.com
Implications for JSW:
- Access to BPSL remains paused, with capacity and earnings at risk.
- Board maintains no provision in Q4 results, citing recoverable net assets. business-standard.com
4. ⚠️ Warning on Chinese Steel Imports
JSW’s management flagged rising Chinese steel imports due to new trade deals, urging policymakers to watch for dumping risks and potential price suppression.
Significance: Margin risk from external stimuli, especially for domestic producers like JSW.
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5. 🧠 Key Insights for Readers
| Topic | Insight |
|---|---|
| Generational Investment | ₹1L → ₹80 Cr highlights exponential long-term value |
| Q4 Performance | Profit gains but needs to sustain revenue growth |
| Bhushan Power Case | Court pause gives time; tax reversal risk looms |
| Import Pressures | Management’s call for government protection measure |
🌍 Bhushan Power Integration: What’s the Bigger Picture?
JSW’s ongoing integration of Bhushan Power and Steel continues to be a strategic priority. Here’s why it matters:
- Capacity Addition: With Bhushan’s plants in Odisha, JSW is boosting its capacity by nearly 5 million tonnes per annum.
- Cost Synergies: Integration brings down logistics and raw material procurement costs by leveraging JSW’s existing infrastructure.
- Eastern India Market Access: Bhushan gives JSW direct access to high-growth markets in West Bengal, Bihar, and Jharkhand.
This will not only improve JSW’s bottom line over time but also strengthen its position as India’s largest private steel producer.
🔮 Market Outlook: Is JSW a Good Steel Bet in FY 2025–26?
With:
- Rising domestic steel demand due to infra projects
- Strong Q4 performance
- Strategic acquisitions
- Retail interest via social buzz
JSW Steel is in a solid position. However, the global steel cycle, raw material price fluctuations, and export duties are risks to monitor.
📌 Investor Tip (Educational): Always assess steel companies based on EBITDA/tonne, debt-to-equity ratio, and capacity utilization metrics.
6. ✅ Conclusion & Call‑to‑Action
JSW Steel stands at a pivotal moment—profit growth intersects with regulatory uncertainty. While stories like ₹80 crore gains reinforce long-term faith, upcoming tax reversals and import pressures warrant caution.
Call to Action:
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