Jindal Steel & Power shares tumble 14% after Q3 profit down 51% YoY to Rs 951 crore
The steelmaker's profit halved due to weak steel prices, exacerbated by cheaper imports into India, which weighed on earnings.
The company produced 1.99 million tonnes and sold 1.90 million tonnes of steel during the quarter, with sales volume rising 5% year-on-year. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) fell 24% year-on-year to Rs 2,133 crore. The operating profit was adjusted for a one-off forex gain of Rs 51 crore during the quarter.
The adjusted operating profit per tonne of steel stood at Rs 11,209, lower than Rs 15,472 a year ago and Rs 11,467 in the September quarter, which is typically a seasonally weak quarter for steel companies.
The steelmaker's net debt rose to Rs 13,551 crore at the end of December, from Rs 12,464 crore a quarter ago, while the net debt-to-EBITDA ratio rose to 1.40 times from 1.21 times at the end of the September quarter. Jindal Steel spent Rs 2,857 crore on capital expenditure during the quarter.
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