JSPL Q1 Results: Net profit drops 14% to Rs 1,686 crore but beats estimates

Jindal Steel and Power's Q1

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26 Aug, 2025 12:21

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Jindal Steel & Power (JSPL) recorded a 14.4 percent year-on-year decline in consolidated net profit at Rs 1,686.94 crore for the June FY24 quarter, due to decline in operating profits and muted top line performance.

However, despite the decline, JSPL posted way above estimates for bottom-line performance. Bloomberg consensus had estimated net profit of Rs 688.7 crore for Q1FY24.

The company in the corresponding quarter of the previous year had reported net profit of Rs 1,970.03 crore.

Consolidated revenue for the quarter declined 3.5 percent to Rs 12,588.3 crore compared to Rs 13, 045.4 the year-ago period. Bloomberg consensus estimate stood at Rs 12,778.6 crore.

Shares of the steelmaker extended its rally by 2.59 percent to end at Rs 693.90 a piece on the NSE on August 11, before the results were announced.

The company's sales stood at 1.84 million, up six percent year-on-year but a decline of 9 percent sequentially, driven by seasonally weak consumption in the domestic market.

Share of exports remained flattish at 10 percent during the quarter vis-à-vis 11 percent in the corresponding quarter of the previous year.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at Rs 2,628.04 crore, down 23.6 percent year on year basis. Bloomberg estimates for EBITDA stood at Rs 2,125.8 crore.

Meanwhile, EBITDA margins shrunk to 20.8 percent for the quarter ended June 30 versus 26.4 percent for the corresponding quarter of the previous year.

Other key highlights:

JSPL continued its journey of deleveraging and has further reduced its net debt by Rs 141 crore during the quarter to a 15-year low at Rs 6,812 crore as at June 30, 2023. Net debt to EBITDA stood at 0.75 times in the quarter under review vs 0.7 times at March 31, 23.

Balance sheet continued to strengthen while supporting the on-going capex. The total capex for  the quarter stood at Rs 1,899 crore largely driven by the Angul expansion projects. Consolidated net debt was at 15-year low at Rs 6,812 crore. Consolidated Net Debt/ EBITDA at 0.75 times as at June 30, 2023.