- 02 May 2025
- ICICIdirect Research
JINDAL STEEL AND POWER TOTAL OPERATING INCOME ON CONSOLIDATED BASIS FOR Q4FY25 CAME IN AT RS 13138 CRORE
News: Total operating income on consolidated basis for Q4FY25 came in at ₹13,138 crore (down 2% YoY, up 12% QoQ) with steel sales volume of 2.1 MT (up 6% YoY, 12% QoQ). Reported EBITDA for the quarter came in at ₹2,271 crore with corresponding EBITDA margins at 17.2% (down 136 bps QoQ). EBITDA/tonne stood at ₹10,661 vs ₹11,494 in Q3FY25 vs ₹12,162 in Q4FY24. Consolidated PAT reported a loss of ₹304 crore in the quarter (including exceptional loss of ~₹1,229 crores owing to diminution in value of investments at its oversea subsidiary.
View: Volume grew healthy for the quarter driven by higher utilisation and inventory liquidation. However, EBITDA/ton came in below our expectation (our estimation ~₹12,500/ton), largely due to one off exceptional loss of ₹231 crores and blended realization was flat in the quarter. Going ahead, the new ~3.3 MTPA of Angul capacity expected to commissioned in Q1FY26, is set to contribute volume growth from FY26 onwards. Additionally, the ongoing recovery in domestic steel prices, along with lower raw material prices, is expected to expand margin starting from Q1FY26. As a result, we have medium to long term view on the company given its strategic capacity expansion, favourable steel demand domestically, healthy backward integration and controlled leverage on B/S (Debt: Equity at ~0.4x).
Impact: Neutral