Jindal Steel Q3 Results: Profit Halves to Rs 951 Crore on Weak Steel Prices
Jindal Steel and Power reported a 51% year-on-year decline in its consolidated net profit for the third quarter of fiscal year 2025 (Q3 FY25), primarily due to weak steel prices and increased competition from cheaper imports. The company's financial performance reflects the challenges faced by the steel industry during the quarter.
Financial Performance Overview
For the quarter ended December 2024, Jindal Steel reported a consolidated net profit of Rs 951 crore, down 51% from Rs 1,928.27 crore (adjusted for YoY comparison) in the same period last year. Gross revenue remained relatively flat at Rs 13,707 crore. The company produced 1.99 million tonnes and sold 1.90 million tonnes of steel during the quarter, with sales volume rising 5% year-on-year.
Key Financial Highlights (Consolidated, YoY)
- Consolidated Net Profit: Decreased by 51% to Rs 951 crore from Rs 1,928.27 crore (adjusted for YoY comparison).
- Gross Revenue: Remained flat at Rs 13,707 crore.
- Adjusted EBITDA: Fell by 24% to Rs 2,133 crore.
- Steel Sales Volume: Increased by 5% to 1.90 million tonnes.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 24% year-on-year to Rs 2,133 crore, adjusted for a one-off forex gain of Rs 51 crore during the quarter.
Operating Profit and Debt
The adjusted operating profit per tonne of steel stood at Rs 11,209, lower than Rs 15,472 a year ago and Rs 11,467 in the previous quarter (Q2 FY25). The company's net debt rose to Rs 13,551 crore at the end of December from Rs 12,464 crore a quarter ago. The net debt to EBITDA ratio increased to 1.40 times from 1.21 times at the end of Q2 FY25. Jindal Steel spent Rs 2,857 crore on capital expenditure during the quarter.
Expansion Plans and Capex
Jindal Steel stated that its planned expansion projects are progressing as per the stipulated timelines. The company plans to spend Rs 23,400 crore on capital expenditure between 2025 and 2028. This includes carried-forward capex, sustenance capex, enhancing some projects, and integrated supply chain projects.
Jindal Steel currently has a production capacity of 9.6 million tonnes, which is projected to increase to 13.5 million tonnes in the next fiscal year and 15.9 million tonnes by 2026-27.
The company reported its earnings after market hours. Its shares closed at Rs 840.05 on the NSE, down 1% from the previous close.
Jindal Steel's Q3 FY25 results reflect the impact of weak steel prices and increased imports on the company's profitability. Despite the challenges, the company is progressing with its expansion plans and aims to significantly increase its production capacity in the coming years.
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