Earnings Review
Jindal Steel reports loss in Jan-Mar on one-time provision
This story was originally published at 23:14 IST on 30 April 2025
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--Jindal Steel Jan-Mar consol net loss INR 3.39 bln
--Analysts saw Jindal Steel Jan-Mar consol net profit INR 9.75 bln
--Jindal Steel Jan-Mar consol net loss INR 3.39 bln vs INR 9.35 bln PAT
--Jindal Steel Jan-Mar consol revenue INR 131.83 bln vs INR 134.87 bln yr ago
--Jindal Steel FY25 consol PAT INR 28.12 bln vs INR 59.38 bln year ago
--Jindal Steel FY25 consol revenue INR 497.65 bln vs INR 500.27 bln year ago
--Jindal Steel Jan-Mar one-time cost of INR 12.29 bln
--Jindal Steel consol net debt INR 119.57 bln Mar 31 vs INR 135.51 bln Dec 31
--Jindal Steel Jan-Mar consol adjusted EBITDA INR 24.82 bln, down 1% on year
--Jindal Steel to pay INR 2 per share final dividend for FY25
--Jindal Steel FY25 consol adjusted EBITDA INR 95.70 bln vs INR 102.31 bln
--Jindal Steel Jan-Mar steel production 2.11 mln tn vs 2.05 mln tn year ago
--Jindal Steel Jan-Mar steel sales 2.13 mln tn vs 2.01 mln tn year ago
--Jindal Steel Jan-Mar capex INR 23.12 bln on expansion projects at Angul
By Sandeep Sinha
MUMBAI – Jindal Steel & Power Ltd. reported a loss for the March quarter because of one-time provision made on account of overseas subsidiaries. However, the revenue of the steel major for Jan-Mar exceeded analysts' expectation for the second straight quarter on higher steel production and sales.
The company reported a consolidated net loss of INR 3.39 billion for Jan-Mar against a profit of INR 9.35 billion in the year-ago period. Analysts had expected the company to report a consolidated net profit of INR 9.75 billion. The company made a provision of INR 12.29 billion towards diminution in value of investments in its subsidiaries in Australia.
The company's consolidated revenue for the March quarter fell to INR 131.83 billion from INR 134.87 billion a year ago, but was higher than analysts' estimate of INR 120.65 billion.
Jindal Steel reported a sharp drop in consolidated profit after tax for 2024-25 (Apr-Mar) to INR 28.12 billion from INR 59.38 billion the previous year. Consolidated sales for the financial year declined to INR 497.65 billion from INR 500.27 billion the previous year.
The company's consolidated earnings before interest, taxes, depreciation, and amortisation for the March quarter fell 1% on year to INR 24.82 billion. The Street had expected the EBITDA at INR 22.99 billion due to decline in revenue. Consolidated EBITDA for the financial year ended March fell to INR 95.70 billion from INR 102.31 billion year ago.
During the quarter, Jindal Steel produced 2.11 million tonnes of steel, higher than 2.05 million tonnes it had produced a year ago. The company sold 2.13 million tonnes of steel in the March quarter, up from 2.01 million tonnes sold a year ago. In the previous financial year, the company reported highest production of steel at 8.12 million tonnes compared with 7.92 million tonnes in FY24. It also achieved highest steel sales of 7.97 million of steel from 7.67 million tonnes.
The steel maker reduced its consolidated net debt to INR 119.57 billion in FY25 from INR 135.51 billion in FY24. The company's consolidated net debt to EBITDA ratio decreased to 1.26 times in March quarter from 1.40 times in December quarter.
It also incurred capital expenditure of INR 23.12 billion last quarter owing to expansion projects at Angul, Odisha. It said the planned expansion projects are progressing well as per the stipulated timelines, supported by strong company financials.
The company also received mine opening permission for Utkal B1 and won Saradhapur Jalatap East Coal block in Odisha in the 11th round of e-auction in the March quarter. Jindal Steel's board of directors recommended a final dividend of INR 2 per share for FY25, subject to approval of shareholders.
On Wednesday, shares of the company closed flat at INR 895.65 on the National Stock Exchange. The company announced its Jan-Mar earnings post market hours Wednesday. End
Edited by Ashish Shirke and Deepshikha Bhardwaj
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