Jindal Steel & Power Q4 Results: Steelmaker Slips Into Loss
The board of Jindal Steel proposed a dividend of Rs 2 per share at a face value of Re 1 each.
Jindal Steel & Power Ltd. recorded a consolidated net loss of Rs 339.4 crore in the quarter ended March as compared to a net profit of Rs 950.48 crore in the previous quarter period.
Analysts tracked by Bloomberg expected the steel maker to remain profitable, as they had a consensus estimate of Rs 1,078 crore.
The board of Jindal Steel proposed a dividend of Rs 2 per share at a face value of Re 1 each for the financial year ended March 31, 2025.
Jindal Steel Q4 FY25 Highlights (Consolidated QoQ)
Revenue up 12.19% at Rs 13,183.13 crore vs Rs 11,750.67 crore (Bloomberg estimate: Rs 12,419 crore).
Ebitda up 8.87% at Rs 2,270.75 crore vs Rs 2,085.57 crore (Estimate at Rs 2,446 crore).
Margin at 17.22% vs 17.74% (Estimate at 19.7%).
Net loss at Rs 339.4 crore vs profit of Rs 950.48 crore (Estimate: Rs 1,078 crore profit).
What Helped Revenue Growth
JSPL's Q4FY25 revenue growth was due to a 12% quarter on quarter increase in its sales volumes as well as 1% uptick in the blended average selling price.
Why Did JSPL Slip Into Losses In Q4
Despite the strong revenue uptick, the company slipped also losses due to an exceptional loss of Rs 1,229.5 crore. This exceptional loss included:
An impairment provision recognised of mining assets under intangible assets amounting to Rs 1,091.59 crores, in an overseas subsidiary Wollongong Resources Pty. Ltd., Australia.
An impairment provision recognised of mining assets under intangible assets under development amounting to Rs 13.51 crores and Rs 12.87 crores, respectively, in overseas subsidiaries, Jindal Madagascar SARL and Osho Madagascar SARL, Madagascar.
Expected credit loss allowance for certain loans and advances amounting to Rs 111.45 crores in an overseas subsidiary Jindal Steel & Power (Mauritius) Limited, Mauritius.
Debt Profile
The company's net debt also increased almost 7% on an annual basis to Rs 11,957 crore. While the company did repay Rs 6,229 crore during the fiscal, it also raised Rs 8,175 crore of fresh debt, which led to an increase in total debt.
Shares of Jindal Steel closed 0.02% higher at Rs 895.65 apiece on the NSE, compared to a 0.01% fall in the benchmark Nifty. The stock has fallen 3.66% in the last 12 months and 3.77% on a year-to-date basis.
Out of the 29 analysts tracking the company, 19 have a 'buy' rating on the stock, five suggest 'hold' and as many recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 9.3%.
