Jindal Steel (JINDALSTEL) Q1 24/25 earnings summary

Executive summary

• Gross revenue for Q1FY25 was INR 15,788 Cr, up 9% year-over-year, with steel sales volume rising 14% to 2.09 million tons and production at 2.05 million tons.

• Adjusted EBITDA reached INR 2,831 Cr, up 13% sequentially and 5% year-over-year, with PAT at INR 1,338 Cr, up 43% sequentially.

• Product mix improved, with flat products rising to 43% of sales from 32% last year, and value-added product sales increasing.

• Construction and infrastructure segments accounted for 47% of sales, driven by customized offerings.

• Major expansion projects, including HSM ramp-up and new blast furnace, are progressing on schedule.

Financial highlights

• Net revenue for Q1FY25 was INR 13,652 Cr, up from INR 12,644 Cr year-over-year.

• Net debt reduced to INR 10,462 Cr from INR 11,203 Cr last quarter, with Net Debt/EBITDA at 1.0x.

• Adjusted EBITDA margin per ton increased to INR 13,527 in Q1FY25 from INR 12,696 in Q1FY24.

• Standalone PAT for Q1FY25 was INR 1,457 Cr, up from INR 1,400 Cr in Q1FY24.

• CapEx for the quarter was INR 2,796 Cr, with cumulative project CapEx at INR 17,500 Cr out of a planned INR 31,000 Cr.

Outlook and guidance

• Ongoing capacity expansion projects are on track, with major projects like the slurry pipeline and new blast furnace scheduled for completion by FY25-FY27.

• Further cost reductions in coking coal and iron ore are expected in Q2.

• Targeting Net Debt/EBITDA below 1.5x across the cycle, supporting future growth and financial stability.

• Confident in maintaining at least 2 million tons sales volume per quarter.

• No major cost escalation expected for ongoing projects; contingency built into budgets.