Jindal Steel & Power Q3 Preview: Profit, Ebitda May Rise

Jindal Steel & Power Ltd.'s net profit may rise in the third quarter of FY24, analysts said.

The company's net profit is estimated to increase by 23% to Rs 1,115.7 crore in the December quarter, according to consensus estimates of analysts tracked by Bloomberg. This compares with Rs 907.4 crore in the same period last year.

However, revenue may decline 1.1% to Rs 12,311.4 crore on the back of lower volume.

• Revenue may decline 1.1% to Rs 12,311.4 crore.

• Ebitda may increase 0.8% to Rs 2,396.0 crore.

• Margin may improve to 19.5% vs 19.3%.

• Net profit may rise 23.0% to Rs 1,115.7 crore

On a sequential basis, the company is expected to report an 8.3% increase in Ebitda, as per Bloomberg estimates.

“JSPL is estimated to report an increase in Ebitda/t by Rs 770/t QoQ on account of increase in realisation by Rs 2,400/t, high base, commissioning of captive coal mine partially offset by higher coking coal price of $25/t," Centrum Broking Ltd. said in its overview of metals and mining for Q3 FY24.

Kotak Securities Ltd. expects margins to recover in the December quarter, led by recent price hikes and the ramp-up of captive coal mines, which are partially offset by higher coking coal prices.

However, raw material and weaker steel prices suggest downward pressure on steel margins in Q4 FY24, Kotak said in a separate note.

In January 2024, the company announced the commissioning of a 5.5 mtpa hot strip mill in Odisha's Angul. Prabhudas Lilladher Pvt. expects this to increase the proportion of flat products to 55-60% from 33%, aiding product mix and margin improvement over the next two years.