The shares of a leading steel producer from Jindal Group fell as much as 16% in today’s trade after posting disappointing Q3 results.
Share Price Movement
The shares of Jindal Steel and Power Ltd, with a market capitalization of Rs 77,241.07 Crores, hit an 11-month low of Rs 723 per share which was around 16% down at 9:30 AM today, and were trading at Rs 773 as of noon, which was around 8% down from its previous close of Rs 840 per share.
Reason for the Fall
The Company reported a 51% decline in Net profits from Rs 1,928 Crores in Q3FY24 to Rs 951 Crores in Q3FY25. On a Quarterly basis, however, their Net Profits grew by 10.6% from Rs 860 Cr in Q2FY25.
Revenue from Operations slightly grew from Rs 11,736 Crores in Q3FY24 to Rs 11,777 Crores in Q3FY25, and on a Quarterly basis, revenues grew by 5% from Rs 11,248 Crores in Q2FY25.
Adjusted EBITDA fell by 24% from Rs 2,802 Crores in Q3FY24 to Rs 2,133 Crores in Q3FY25, and on a Quarterly basis, it slightly grew by 0.4% from Rs 2,124 Crores in Q2FY25.
The company’s Adjusted EBITDA per ton fell by 38% from Rs 15,472 Crores in Q3FY24 to Rs 11,209 Crores in Q3FY25, and on a Quarterly basis, it fell slightly by 2.3% from Rs 11,467 Crores in Q2FY25.
The company’s steel production grew from 1.94 MT in Q3FY24 to 1.99 MT in Q3FY25, and its steel sales grew from 1.81 MT to 1.90 MT over the same period.
Their Net debt has increased from Rs 9,115 Crores in Q3FY24 to Rs 13,551 Crores in Q3FY25.
The company has outlined an additional capex of approximately Rs 15,000 crores from FY26 to FY28.
Sector-wise Sales distribution
Infrastructure contributes to 43% of sales, Distribution contributes to 31% of sales, 12% of sales come from Engineering & Packaging, 11% from Building & Construction, and 4% of sales from Automotive as of Q3FY25.
Price Targets
Morgan Stanley remains “overweight” on JSPL with a price target of ₹1,200, but Citi has a “sell” rating on the stock with a price target of ₹765.
About Jindal Steel & Power Ltd
Jindal Steel and Power (JSP) is one of India’s leading business houses, with a significant presence in steel, mining, power, and infrastructure. With business operations spanning across India, Africa, and Australia, JSP has firmly established itself as a global player in its chosen industries. Their Steel Production Capacity is 9.6 MTPA, with 1634 MW Captive Power Capacity, and employs over 20,000 people across 3 continents.
Written By Adhvaitha Nayani
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