Jindal Saw (JINDALSAW) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a 15% year-over-year increase in standalone revenue to INR 4,417 crore and a 12% rise in consolidated revenue to INR 4,985 crore, with EBITDA up 37% to INR 885 crore and PAT up 70% to INR 416 crore.

• Standalone net profit after tax was INR 445.15 crore, up from INR 279.14 crore in Q1 FY24, and consolidated net profit after tax stood at INR 416.43 crore, up from INR 109.32 crore in Q1 FY24.

• The quarter reflects the impact of the amalgamation of Jindal Quality Tubular, Jindal Tubular (India), and Jindal Fittings, with prior period figures restated.

• The company continues to focus on value-added products, with consistent improvement in financial performance and a strong order book.

• Management expects FY25 to set a new benchmark for best-ever performance, continuing the trend of record results.

Financial highlights

• EBITDA margin improved to 14.60% from 10.94% in Q1 FY24, with standalone operating margin at 15.33% and EBITDA to sales ratio reflecting operational efficiency.

• Standalone debt increased from INR 3,200 crore to INR 3,900 crore, mainly due to higher working capital requirements.

• Dividend distribution improved, but capital is being conserved for future opportunities.

• Consolidated EPS (basic) was INR 13.86, up from INR 8.33 in Q1 FY24.

• Group share of profit from joint ventures was INR 5.23 crore in Q1 FY25.

Outlook and guidance

• Strong government infrastructure spending and a healthy order book support a positive outlook.

• No major new CapEx announced, but debottlenecking and capacity enhancements are ongoing.

• The amalgamation is expected to strengthen the business and financial position going forward.

• Management expects a favorable outcome in the ongoing legal case related to Jindal ITF, with no adjustments made to carrying values.