Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
In the latest financial quarter, Jindal Stainless experienced a 6% quarter-over-quarter decline in volume, resulting in a 4.5% drop in standalone EBITDA to 1,020 crore, as reported by Nuvama Institutional Equities. Despite this setback, EBITDA per tonne increased by 1.3% to 19,938. The brokerage noted that the impact of lower volume and profitability, coupled with the anticipated growth slowdown in FY26, led to a 3.1% and 2% reduction in FY24E/25E EBITDA.
Jindal Stainless successfully managed to offset lower fixed-cost absorption by enhancing its product mix, contributing to a 10% quarter-over-quarter increase in gross margin to 58,503 per tonne. The consolidated EBITDA for the quarter stood at 1,250 crore, up 1.3% quarter-over-quarter, driven by improved performance from foreign subsidiaries and Jindal United Steel Limited's EBITDA.
Despite investing approximately 900 crore in capital expenditures during Q3FY24, including investments in an Indonesian pig iron plant and the acquisition of Rabirun Vinimay Private, Jindal Stainless saw a decrease in consolidated net debt to 4,825 crore. The brokerage mentioned that the in-principle approval for the sale of JSL Board's 26% ownership in Jindal Coke has been received.
Looking ahead, the brokerage predicts a 37% year-over-year profit growth in FY25, tapering to 10% in FY26. The benefits of the next phase of expansion, if any, are expected to materialise only in FY27 and beyond, prompting the brokerage to adjust its fair value estimate for the stock to ₹578 at 7x EV/EBITDA and downgrade it to 'HOLD.'
Also Read : BHEL bags order worth ₹9,500 cr to set up 1,600 MW thermal project from NTPC Nippon Steel Secures $5.6 Billion in Loans to Fund U.S. Steel Acquisition
Tesla might be looking for a regional partner to launch its operation in India. According to well-pl...
Automobiles 10-Apr-2024
India's scrap imports rose by 15% on-month in May, reaching 0.61 million tonnes after four months of...
Raw Material 11-Jun-2024
According to Minister of Housing and Urban Affairs Hardeep Singh Puri, India's rapidly expanding con...
Construction 20-Feb-2024
Tata Steel’s Q4 net profit up 117% YoY. Domestic profits declined on weak prices. ₹3.60 per...
Business 13-May-2025
Global crude steel production for the 71 countries reporting to the World Steel Association (worldst...
Ferrous 23-Feb-2024
The threat of cheap steel imports flooding Indian markets has returned to threaten Indian alloy prod...
Ferrous 15-May-2024