JSPL shares plunge 14% after Q3FY25 results; key factors behind fall

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Jindal Steel & Power Ltd (JSPL) share price plunged 13.82 per cent at Rs 723.95 a piece on the BSE in Friday’s intraday trade after the company’s profitability declined due to rising costs and compressed margins in third quarter of financial year 2024-25 (Q3FY25).

 

The company reported a revenue of Rs 11,750.7 crore for the quarter, reflecting a marginal 0.4 per cent increase compared to Rs 11,700 crore Y-o-Y. Ebitda stood at Rs 2,184 crore, compared to Rs 2,843 crore Y-o-Y, with an Ebitda margin of 18.59 per cent, compared to 24.30 per cent Y-o-Y.

 

However, adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) dropped by 23.2 per cent to Rs 2,183.9 crore from Rs 2,843 crore Y-o-Y, due to increased operational expenses and pricing challenges. Ebitda margin came in at 18.59 per cent in Q3FY25, compared to 24.30 per cent in Q3FY24.

 

Net profit declined 50.7 per cent Y-o-Y to Rs 950 crore in Q3FY25 compared to Rs 1,928 crore Y-o-Y. Sequentially, the profit grew 10.4 per cent against Rs 860 crore in Q2FY25. 

 

JSPL’s net debt rose to Rs 13,551 crore as of December 31, 2024, up from Rs 12,464 crore in the previous quarter, pushing its net debt-to-Ebitda ratio to 1.40x. 

 

The company’s steel production reached 1.99 million tonnes (MT), up 3 per cent Y-o-Y, while steel sales stood at 1.90 MT, marking a 5 per cent Y-o-Y increase. Exports accounted for 7 per cent of total sales. For the nine months ending December 2024, the company recorded a gross revenue of Rs 42,519 crore and a net profit of Rs 3,149 crore.

 

On the equities front, JSPL share price has underperformed the market, falling 23 per cent in the last six months, while rising 0.4 per cent in the last one year. In comparison, the BSE Sensex has slipped 5.7 per cent in the last six months, while rising 7.3 per cent in the last one year. 

 

JSPL has a total market capitalisation of Rs 77,781.72 crore. Its shares are listed at a price to earnings multiple of 15.20 and at an earning per share of Rs 50.15, according to BSE. 

 

At 10:09 AM, the stock price of the company was down 10.06 per cent at Rs 755.55 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 76,972.48 level.