Jindal Steel Q4 Results: Profit doubles in March quarter on lower costs

Consolidated operating profit for the quarter rose more than 12% on year to Rs 2,512 crore, adjusted for one-time foreign exchange loss of Rs 68 crore. “EBITDA was driven by reduction in raw material cost, partly offset by lower NSR (net sales realisations) during the quarter,” the company said in a statement.

The cost of materials consumed fell by nearly 15% on year to Rs 5,364.63 crore.

Jindal Steel is currently in the midst of expanding capacities, and spent Rs 2,523 crore during the quarter, and Rs 8,517 crore in 2023-24 (Apr-Mar) on capital expenditure. Its net debt rose to Rs 11,203 crore as on March-end from Rs 9,115 crore.

“Increased debt reflects higher payments on account of completion of several projects in line with capex program,” the company said.

It currently has the capacity to produce 9.6 million tonne of crude steel, which is set to increase to 15.9 million tonne in the current financial year.

Jindal Steel will be spending a total of Rs 31,000 crore on its “growth capex”, of which more than Rs 23,000 crore will be used for ramping up capacity at Angul, with new projects, coal mines and other projects taking up the rest.

The company announced its earnings after market hours, and its shares closed at 939.45 rupees on the NSE, up 1% from the previous close. It has also announced a final dividend of Rs 2 per share.