Jindal Steel and Power Ltd. reported a decline in net profit in the first quarter of fiscal 2025, in line with analysts' estimates, as loss in wholly-owned subsidiaries dragged.
The company reported a 21% fall in the bottom line to Rs 1,338 crore in the quarter-ended June, as compared with Rs 1,692 crore over the same period last year, according to an exchange filing on Wednesday. Analyst estimates compiled by Bloomberg forecast it at Rs 1,319 crore. On a sequential basis, profit was up 35.6%.
Units Jindal Steel and Power (Mauritius) Ltd. and certain subsidiaries have been incurring loss over the years.
Jindal Steel And Power Q1 FY25 Highlights (Consolidated, YoY)
Revenue up 8% to Rs 13,618 crore versus Rs 12,588 crore (Bloomberg estimate: Rs 13,194 crore).
Ebitda up 8% to Rs 2,839 crore versus Rs 2,628 crore (Bloomberg estimate: Rs 2,719 crore).
Ebitda margin flat at 20.9% versus 20.9% (Bloomberg estimate: 20.6%).
Net profit down 21% to Rs 1,338 crore versus Rs 1,692 crore (Bloomberg estimate: Rs 1,319 crore).
The production and sales of the Delhi-based steelmaker stood at 2.05 million tonne (flat YoY) and 2.09 million tonne (up 14% YoY), respectively. Performance was driven by higher sales volume and reduction in costs, the company said.
JSPL's total capex for the quarter was Rs 2,796 crore, largely driven by the expansion projects in India.
The company managed to reduce its net debt to Rs 10,462 crore as of June, as compared to Rs 11,203 crore reported in the previous quarter. Net debt to Ebitda also declined to 1.0 times.
Shares of Jindal Steel & Power closed 2.02% higher at Rs 972.05 apiece, ahead of the announcement, as compared to a 0.35% decline in the benchmark BSE Sensex.
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