Jindal Steel (JINDALSTEL) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 steel production rose 4% YoY to 1.97 mt, but sales dropped 8% YoY to 1.85 mt due to plant shutdowns; net revenue was ₹11,248 Cr, down 18% sequentially and 8% YoY.

• Adjusted consolidated EBITDA was ₹2,124 Cr, with EBITDA per ton at ₹11,467, down 15% sequentially and 4% YoY; PAT declined 36% QoQ and 38% YoY to ₹860 Cr.

• Net debt increased to ₹12,464 Cr, with net debt/EBITDA at 1.21x, up from 1.0x in Q1FY25 but below the 1.5x target.

• Capex for Q2 FY25 was ₹2,642 Cr, mainly for Angul expansion; cumulative expansion Capex at ₹20,562 Cr.

• Gross revenue for Q2 FY25 was ₹13,025 Cr, down from ₹15,788 Cr in Q1FY25 and ₹14,128 Cr in Q2FY24.

Financial highlights

• Standalone ASP declined 3% sequentially; cost remained flat, with lower input prices offset by other expenses and lower volumes.

• 50% of sales volume comprised value-added products; value-added product sales increased, with a 55% share in construction and infrastructure.

• Export share rose to 9% from 7% last quarter; ever highest quarterly exports of rails achieved.

• Depreciation and amortization for Q2FY25 was ₹696 Cr; finance cost stable at ₹326 Cr.

• Coking coal prices fell by $35/ton and iron ore by ₹500/ton sequentially.

Outlook and guidance

• Capex program remains on track, targeting crude steel capacity of 15.9 MTPA and finished steel capacity of 13.75 MTPA by FY27.

• H2 expected to outperform H1, driven by seasonal demand and lower input costs; coking coal costs expected to drop another $20–$25/ton in Q3.

• Price hikes of ₹1,000–2,000/ton already implemented in Q3.

• Capex allocation for growth projects totals ₹31,000 Cr, with major investments in Angul and new projects.