Jindal Steel (JINDALSTEL) Q1 24/25 earnings summary

Executive summary

• Sales volume increased 14% year-over-year to 2.09 million tons, with steel production steady at 2.05 million tons.

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

• Gross revenue for Q1 FY25 was INR 15,788 crore, up 9% year-over-year.

• Net debt reduced to INR 10,462 crore, with Net Debt/EBITDA at 1.0x, indicating a strong balance sheet.

• Product mix improved, with flat products rising to 43% of sales from 32% last year.

Financial highlights

• Net revenue for Q1 FY25 was INR 13,652 crore, up from INR 12,644 crore in Q1 FY24.

• Adjusted EBITDA margin improved, with per ton EBITDA at INR 13,527 in Q1 FY25 versus INR 12,696 in Q1 FY24.

• Standalone PAT for Q1 FY25 was INR 1,457 crore, up from INR 1,400 crore in Q1 FY24.

• CapEx for the quarter was INR 2,796 crore; cumulative project CapEx reached INR 17,500 crore out of a planned INR 31,000 crore.

• Net debt reduced by INR 741 crore during the quarter.

Outlook and guidance

• Ongoing capacity expansion projects, including new pellet plants, blast furnaces, and power plants, are on track with phased commissioning through FY26.

• Expecting further cost reductions in coking coal and iron ore in Q2.

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

• Targeting Net Debt/EBITDA below 1.5x across the cycle.

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