Picking up a 100% stake in Saffron Resources
The board approved the acquisition of up to 100% equity in Saffron Resources Pvt Ltd, a company that owns 887 acres of land in Odisha. The acquisition is part of JSW’s strategy to secure strategic land assets, though the deal value was not disclosed.
Share purchase option agreement to raise stake in JSSL
JSW Steel entered into a Share Purchase Option Agreement with Severfield plc and its affiliates to acquire up to an additional 24.9% equity stake in JSW Severfield Structures Ltd (JSSL), its 50:50 joint venture with Severfield Mauritius Ltd.
The potential transaction, subject to the exercise of a put option by Severfield, is valued at up to ₹235.10 crore at ₹20.9 per share.
JSSL posted revenue of ₹1,014.2 crore in FY25 and operates in the structural steel construction space across India and Saudi Arabia.
Iron ore JV with Andhra Pradesh Mineral Corporation
The board also approved the formation of a joint venture with Andhra Pradesh Mineral Development Corporation (APMDC) to develop the ₹1,075 crore Konijedu Marlapadu Integrated Iron Ore Project in Andhra Pradesh.
JSW Steel will hold an 89% stake while APMDC will retain 11% as free ride equity.
The JV aims to beneficiate low-grade iron ore, producing 1.3 million tonnes of high-grade concentrate annually. It is expected to cut JSW’s reliance on imported ore and lower costs.
JSW Q1 Results
JSW Steel’s consolidated net profit more than doubled to ₹2,184 crore in the June quarter from ₹845 crore a year earlier, helped by a sharp reduction in expenses. Total costs fell 3.3% year-on-year to ₹40,325 crore, down by over ₹1,400 crore.
The drop in expenses also boosted operating performance. EBITDA rose 37.5% to ₹7,576 crore, while EBITDA margin expanded nearly 500 basis points to 17.56% from 12.83% a year ago.
Also Read: JSW Steel Q1 Results: Lower expenses contribute to margin, profit expansion
