Jindal Steel Q2 profit rises 21% as revenue hits record Rs 19,448 crore

Jindal Steel posts record quarterly revenue as profits, steel production and sales increase, EBITDA improves, and net debt declines, despite a fall in share price.

Both revenue and profit surpassed analysts’ estimates during the second quarter of this financial year. The company reported its earnings during market hours on Friday, and its shares closed at Rs 1,012.00 apiece on the BSE, down 1.7% from the previous close.

Consolidated steel production increased to 2.4 million tonnes during the quarter, up from 2 million tonnes a year ago, while sales rose to 2.38 million tonnes from 1.87 million tonnes.

Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) increased 33% year-on-year to Rs 2,504 crore in July-September, while adjusted Ebitda on each tonne of steel stood at Rs 10,529 per tonne during the quarter, up from Rs 10,010 per tonne a year ago.

The company sold a higher share of flat products in its overall sales mix and fewer thermo-mechanically treated rebars among its long products, boosting the average selling price, according to its statement.

Jindal Steel’s consolidated net debt fell to Rs 14,786 crore at the end of September from Rs 15,927 crore at the end of the June quarter. Its net debt-to-Ebitda ratio stood at 1.51 times, down from 1.71 times a quarter ago.

The company incurred capital expenditure of Rs 1,228 crore during the quarter.