Jindal Steel and Power PAT falls 21% on higher expenses, flat demand

The quarter, largely coinciding with the general elections, was marked by mostly flat demand in steel, with prices also being weak. The New Delhi-based steelmaker reported a consolidated revenue of Rs 13,617.84 crore

Jindal Steel and Power Ltd reported a near-21 percent year-on-year fall in its Apr-Jun consolidated net profit to Rs 1,337.92 crore, as expenses rose by 8.4 percent over the same period to Rs 11,793.28 crore. The quarter, largely coinciding with the general elections, was marked by mostly flat demand in steel, with prices also being weak.

The New Delhi-based steelmaker reported a consolidated revenue of Rs 13,617.84 crore, 8.2 percent higher than the corresponding quarter last year. Raw material cost, the largest expense component, was Rs 6,377.30 crore in the quarter, higher than the Rs 5,213.85 crore reported last year. Key raw material costs, such as coking coal, remained elevated, but have been showing signs of decline in recent weeks.

Jindal Steel and Power announced that its April-Jun sales stood at 2.09 million tonne, against 2.01 million tonne in the January-March quarter, and 1.84 million tonne in the year-ago period. On the other hand, steel production was flat sequentially at 2.05 million tonne, while production in the same quarter last year was 2.04 million tonne.

During its post-earnings call with analysts, the company's management said that it expects savings of $30-35 per tonne in coking coal costs in the July-September quarter. The company declined to provide a volume guidance for FY25, saying more clarity is expected after the commissioning of the company's expansion works at its Angul steel plant in Odisha.

On July 24, shares of Jindal Steel and Power closed 1.8 percent higher on the National Stock Exchange at Rs 970.10.