Jindal Steel Q1 profit down 20.9% amid revenue growth

25 Jul 2024 , 11:35 AM

Jindal Steel and Power Ltd (JSPL) reported a 20.9% year-on-year (YoY) decline in net profit for the first quarter ending June 30, 2024, amounting to ₹1,337.9 Crore.

In the corresponding quarter of the previous year, Jindal Steel and Power Ltd posted a net profit of ₹1,691.8 Crore. JSPL’s revenue from operations increased by 8.2% to ₹13,617.8 Crore compared to ₹12,588 Crore in the same period of the preceding fiscal.

At the time of writing on July 25, 2024 at 11:33 am, shares of Jindal Steel and Power Ltd is currently trading at ₹936 which is a 3.74% dip than the previous close. Jindal Steel and Power Ltd stock has gained a total of 40% in the last one year, and 25% since the beginning of the year.

At the operating level, EBITDA rose by 8% to ₹2,839.2 Crore in the first quarter of this fiscal year, compared to ₹2,628 Crore in the corresponding period of the previous year. EBITDA margin remained flat at 21% in the reporting quarter, compared to the corresponding period in the previous fiscal.

Jindal Steel and Power Ltd’s crude steel production increased by 5% year-over-year in Q1 FY25, reaching 36.6 million tonnes (mt).

Finished steel consumption rose by 12% YoY in Q1 FY25 to 35.2 mt, and by 11% YoY in H1 CY24 to 70.8 mt. Total steel exports declined by 51% sequentially during Q1 FY25, primarily due to a drop in Hot Rolled Coil (HRC) exports.

On a year-over-year basis, steel exports were down 2% at 4.5 mt for H1 CY24. Subdued international prices contributed to the decline in both YoY and QoQ export figures for Q1 FY25. Total steel imports declined by 16% sequentially during Q1 FY25 but increased by 32% YoY during the same period.

For H1 CY24, imports increased by 31% year-over-year, driven by lower international prices compared to domestic prices.

Higher imports from China and Free Trade Agreement (FTA) countries helped keep flat product prices in check within the domestic markets.

Jindal Steel and Power Limited (JSPL), based in New Delhi, is part of the OP Jindal Group. JSPL is the third-largest private steel producer in India and the only private player in India to produce rails.

The company manufactures and sells sponge iron, mild steel slabs, rails, mild steel structural, hot rolled plates, iron ore pellets, and coils.

Jindal Steel and Power Ltd set up the world’s first coal-gasification-based DRI plant at Angul, Odisha, using locally available high-ash coal to produce synthesis gas for steel making, reducing dependence on imported coke-rich coal. JSPL’s coal gas-based steel technology became a case study at Harvard University.