Earnings Review
Jindal Steel consol PAT slips but beats Street view
This story was originally published at 22:25 IST on 24 July 2024
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--Jindal Steel Apr-Jun consol net profit 13.40 bln rupees
--Analysts saw Jindal Steel Apr-Jun consol net profit 12.08 bln rupees
--Jindal Steel Apr-Jun consol net profit 13.40 bln rupees vs 16.87 bln
--Jindal Steel Apr-Jun consol revenue 136.18 bln rupees vs 125.88 bln
By Sayantan Sarkar
NEW DELHI – Steel manufacturer Jindal Steel & Power Ltd reported a significant decline on year in consolidated net profit for Apr-Jun, but sequentially the bottom line surged, with the company's consolidated revenues rising 8% on year. The Delhi-headquartered steelmaker's sales increased both on a year-on-year basis and sequentially.
The company's consolidated net profit for the reporting quarter was 13.38 bln rupees, down nearly 21% from the year-ago period, but over 43% higher than the Jan-Mar quarter. The Apr-Jun net profit print was higher than the Street's consensus estimate of 12.08 bln rupees. The company's consolidated revenue came in at 136.18 bln rupees, 8% and 1% higher on year and sequentially, respectively.
During Apr-Jun, Jindal Steel produced 2.05 mln tn of steel, higher than the 2.04 mln tn it produced in the year-ago period and equal to the production in Jan-Mar. On the other hand, the company sold 2.09 mln tn of steel during Apr-Jun, higher than the 1.84 mln tn sold a year ago, and 2.01 mln tn produced in the March quarter.
The company said total capital expenditure during the June quarter was 27.96 bln rupees, largely driven by expansion projects in India.
The company's total expenses for Apr-Jun rose more than 8% over the year-ago period to 117.93 bln rupees, driven by a 22% rise in the cost of raw materials consumed. While the steel industry has been concerned about the increasing prices of thermo-mechanically treated steel, Jindal Steel said flat product prices have remained static with a downward bias as global prices remained subdued.
The company's consolidated earnings before interest, taxes, depreciation, and amortisation was 28.31 bln rupees for the June quarter, compared with 27.04 bln rupees for the same quarter last year. In Jan-Mar, the consolidated EBITDA was 25.12 bln rupees.
Additionally, the company's net debt for the reporting quarter rose to 104.62 bln rupees compared with 68.12 bln rupees last year. Net debt was 112.03 bln rupees during the March quarter.
Today, Jindal Steel & Power shares ended at 972.45 rupees on the National Stock Exchange, up 2.1% over Tuesday's close. End
Edited by Rajeev Pai
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