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Informist, Wednesday, Nov. 6, 2024

 

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--Jindal Steel Jul-Sept consol net profit INR 8.61 bln 
--Analysts saw Jindal Steel Jul-Sept consol net profit INR 8.18 bln 
--Jindal Steel Jul-Sept consol net profit INR 8.61 bln vs INR 13.88 bln 
--Jindal Steel Jul-Sept consol revenue INR 112.13 bln vs INR 122.50 bln 
--Jindal Steel Apr-Sept consol net profit INR 22.01 bln vs INR 30.75 bln 
--Jindal Steel Apr-Sept consol revenue INR 248.31 bln vs INR 248.39 bln 
--Jindal Steel Jul-Sept consol adjusted EBITDA INR 21.24 bln vs INR 22.13 bln 
--Jindal Steel: Share of exports 9% in Jul-Sept steel sales 
--Jindal Steel consol net debt INR 124.6 bln Sept 30 vs INR 104.6 bln Jun 30 
--Jindal Steel: Capex program on track, supported by strong balance sheet 
--Jindal Steel Jul-Sept total capex INR 26.42 bln 
--Jindal Steel Jul-Sept steel production 1.97 mln tn vs 1.90 mln tn year ago 
--Jindal Steel Jul-Sept steel sales 1.85 mln tn vs 2.01 mln tn year ago 

 

By Ayushman Mishra and Apratim Sarkar

 

MUMBAI – Jindal Steel & Power Ltd.'s consolidated net profit for the September quarter fell 35.76% sequentially and 37.97% on year to INR 8.61 billion, but was above analyst expectations. Analysts had pegged the consolidated bottom line at INR 8.18 billion. The consolidated revenue of the steel major in the latest quarter was INR 112.13 billion, down 8.5% on year and 17.7% sequentially. Analysts had forecast a top line of INR 116.51 billion.

 

The company's top line for Apr-Sept was INR 248.31 billion, almost flat on year. The bottom line of the company was INR 22.01 billion, down 28%.

 

The earnings before interest, taxes, depreciation and amortisation of the company in Jul-Sept were INR 21.24 billion, down 4% on year. The EBITDA is adjusted for a one-off foreign exchange gain of INR 760 million in the September quarter and INR 840 million.

 

The company's production of steel during the quarter rose 4% on year to 1.97 million tonnes and sales of steel fell 8% on year to 1.85 million tonnes. The company's production of steel for the Apr-Sept period was 4.02 million tonnes, up from 3.94 million tonnes in the year-ago period, and sales of steel were 3.95 million tonnes, up from 3.85 million tonnes in the year-ago period. The company's share of exports from the sale of steel was 9% for the September quarter. 

 

Jindal Steel and Powers' net debt as of Sept.30 was INR 124.64 billion, up 19.1% from INR 104.62 billion as of June.30. The company's total capital expenditure for the quarter was INR 26.42 billion largely driven by the expansion projects at Angul, Odisha. The company said the capital expenditure remains on track supported by a strong balance sheet.

 

In the September quarter, the company's 40% of sales were from the infrastructure segment, 31% from the distribution segment, and 15% from the building and construction segment. The company said it has a 55% share in the construction and infrastructure segment by strategically developing product offerings in plates, structural, rebar and fabricated solutions. The company saw the highest ever exports of rails.

 

The New Delhi-based company added 1,100 new dealers in the September quarter, taking its dealer count to 4,350 till date. Around 34,000 influencers, to campaign and advertise for the company, were enrolled across nine states during the quarter and 19 experience centres were opened. The company said it has a strong distribution channel of 47 distributors. 

 

The company plans to expand its crude steel capacity by 3.3 million tonnes per annum at its Angul steel plant by the end of the current financial year, taking the total capacity to 12.9 million tonne per annum. It also plans to keep its finished steel capacity unchanged to 13.25 million tonnes per annum in the current financial year.  

 

The company plans to complete its Angul Captive Power Plant-II project by the end of the December quarter. It is also planning to complete the Slurry Pipeline projects, the Basic Oxygen furnace-II project, and the Blast Furnace project by the end of March. 

 

On Wednesday, shares of Jindal Steel and Power closed at INR 951.85 on the National Stock Exchange, up 1.7%.  End

 

Edited by Akul Nishant Akhoury

 

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