On Friday, Jindal Steel & Power Ltd reported a 14.37% year-on-year decrease in its consolidated net profit from continuing operations attributed to the company’s owners for the first quarter of the fiscal year 2023-24, amounting to ₹1,686.94 crore. In the corresponding period of the previous year, the company had recorded a profit of ₹1,970.13 crore. On a sequential basis, the consolidated net profit saw a substantial increase of 265% from ₹462.56 crore in the fourth quarter of the fiscal year 2022-23.
The company’s consolidated revenue from operations experienced a 3.5% decline year-on-year, totaling ₹12,588.34 crores for the quarter ending in June, as compared to ₹13,045.41 crore in the same period of the previous fiscal year. The total income for the first quarter was ₹12,643.63 crore, lower than the ₹13,069.17 crore reported in the same quarter last year.
For the first quarter, the EBITDA stood at ₹2,704 crore, reflecting a sequential increase of 21%, but a year-on-year decrease of 17%.
During the quarter, Jindal Steel & Power’s net debt decreased by ₹141 crore, reaching a 15-year low of ₹6,812 crore by the end of June 2023. The net debt to EBITDA ratio was 0.75x, compared to 0.7x as of March 31, 2023.
In terms of production and sales, Q1 production reached 2.04 million metric tons, a 2% increase from the previous year. Sales amounted to 1.84 million metric tons, showing a 6% growth year-on-year, but a 9% sequential decline due to weaker domestic market consumption.
The management expressed achievements, including the successful commissioning of the state-of-the-art pellet plant at Angul and the acquisition of mining leases for two thermal coal mines, Gare Palma IV/6 and Utkal C. These developments are expected to ensure a consistent and cost-effective coal supply for the company’s thermal coal requirements in DRI Kilns, Coal Gasification, and Power Plants.
On the stock market, Jindal Steel & Power’s share price closed 3.38% higher at ₹698.40 per share on the Bombay Stock Exchange.