- 09 May 2025
- ICICIdirect Research
JINDAL STAINLESS STEEL TOTAL OPERATING INCOME ON CONSOLIDATED BASIS FOR Q4FY25 CAME IN AT RS 10,198 CRORE
JSL - 625 Change: 14.85 (2.43 %)News: Total operating income on consolidated basis for Q4FY25 came in at ₹10,198 crore (up 8% YoY, 3% QoQ) with stainless steel sales volume stood at 6.4 lakh tons, up by 13% YoY and 9% QoQ. Consolidated EBITDA for the quarter came in at ₹1,061 crore with corresponding EBITDA margins at 10.4% (down 180 bps QoQ). EBITDA/tonne on standalone basis came in at ₹13,857/tonne in Q4FY25 vs ₹17,075/tonne in Q3FY25 vs. ₹14,505/tonne in Q4FY24. Consolidated PAT for the quarter stood at ₹590 crore (down 10% QoQ). Additionally, the company signed a non-binding MOU with Maharashtra government for ₹40,000 crores investment to set up stainless steel manufacturing plant, with investments spread over the next 10 years period.
View: Sales volume growth for the quarter came in healthy. However, EBITDA/tonne fell below ₹14,000/tonne mark vs. its consistent endeavor to report more than ₹17,000/tonne mark, largely impacted by lower realization (₹ 1.67 lakh/tonne in Q4FY25 vs. ₹ 1.71 lakh/tonne in Q3FY25). This was on account of higher imports particularly from Vietnam, which has increase by 64% YoY, thereby impacting performance for the quarter. This has resulted in missing its FY25 EBITDA/tonne guidance by reporting ~₹16,500/ton vs target of ~₹17,000/ton in FY25. We await management commentary on near term demand prospects as well as potential improvement in profitability going forward.
Impact: Negative