Jindal Steel & Power Ltd reported a 14.37% year-on-year decline in its consolidated net profit for Q1FY24, amounting to ₹1,686.94 crore. This is compared to a profit of ₹1,970.13 crore in the same period of the previous year. However, the company saw a remarkable sequential improvement in consolidated net profit, with a 265% increase from the previous quarter (Q4FY23), where it stood at ₹462.56 crore.
- The company’s consolidated revenue from operations also experienced a decline, dropping by 3.5% year-on-year to ₹12,588.34 crores during the quarter ended June. This is in comparison to ₹13,045.41 crore in Q1FY23. The total income for the first quarter was reported at ₹12,643.63 crore, as opposed to ₹13,069.17 crore in the same period of the previous year.
- In terms of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), the company reported ₹2,704 crore for the quarter ended June. There was a 21% sequential increase, but a 17% year-on-year decrease in EBITDA.
- Jindal Steel & Power highlighted its continued focus on deleveraging, successfully reducing net debt by ₹141 crore during the quarter. The net debt reached a 15-year low of ₹6,812 crore as of June 30, 2023. The net debt to EBITDA ratio was reported at 0.75x, compared to 0.7x as of March 31, 2023. The company also noted ongoing capital expenditure (capex) initiatives, with a total capex of ₹1,899 crore during the quarter, primarily driven by the Angul expansion projects.
- The company’s production during the quarter stood at 2.04 million tonnes (MT), reflecting a 2% year-on-year increase. However, sales figures showed growth of 6% on a yearly basis, while experiencing a 9% sequential decline, attributed to seasonal weaknesses in domestic market consumption.
Jindal Steel & Power achieved significant milestones during the quarter, including the successful commissioning of a state-of-the-art pellet plant at Angul. Additionally, the company secured mining leases for two thermal coal mines, Gare Palma IV/6 and Utkal C. These developments are expected to ensure a consistent coal supply for various requirements while reducing costs.
Mr. Bimlendra Jha, Managing Director of Jindal Steel & Power, emphasized the company’s “Great Place To Work Certification” as a factor contributing to their improving financial and operational performance.
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