- Production rises by 1% q-o-q
- Capex touches INR 2,850 crore
Steel production and sales of Jindal Steel and Power (JSP) increased by 1.02% and 2.70% q-o-q, respectively, in Q3FY’25.
In the last quarter, capital expenditure (CAPEX) reached INR 2,850 crore, bringing the cumulative investment in the ongoing expansion programme to INR 23,612 crore. As this phase nears completion, the company has announced its next CAPEX cycle (FY’26-FY’28) of INR 23,400 crore investment. This investment is allocated across carried-forward projects (INR 7,388 crore), project enhancements (INR 5,720 crore), integrated supply chain projects (INR 4,500 crore), ongoing operational needs (INR 2,900 crore), and contingency (INR 2,892 crore).
Highlights
Production edges up q-o-q: The company’s production edged up by 1.02% to 1.99 million tonnes (mnt) in Q3FY’25 from 1.97 mnt in the previous quarter. Also, production showed a 2.6% y-o-y increase compared to 1.94 mnt in Q3FY’24.
Steel sales rise q-o-q: Steel sales stood at 1.9 mnt in Q3FY’25, up by 2.7% from 1.85 mnt in the preceding quarter. However, sales were down by 2.1% y-o-y from 1.94 mnt in Q3FY’24.
During the quarter, the infrastructure segment accounted for the majority of the company’s sales, at 43%. Distribution followed closely, with a 31% share, automotive accounted for 11%, while the remaining 12% was constituted by engineering and buildings.
The company commands a 54% market share in the construction and infrastructure segment by offering customised plates, structurals, rebars, and fabricated solutions. It also increased its value-added product share by developing specialised grades for high-growth sectors like shipbuilding, renewables, and defence. Further enhancing its value proposition, the company’s forged rail plant received key regulatory approval.
EBITDA increases marginally q-o-q: JSP’s adjusted EBITDA increased marginally by 0.42% in Q3 to INR 2,133 crore as against INR 2,124 crore in the previous quarter. Additionally, the same declined by 23.9% y-o-y from INR 2,802 crore in Q3FY’24.
Net sales realisations (NSR):
NSR for the quarter stood at INR 60,931/t, marking a 1% increase q-o-q from INR 60,150/t. Rebar prices rose by INR 2,000/t on average during Q3.
While long products accounted for 59% and flats 41% of the product mix this quarter compared to 52% and 48% last quarter, price corrections of 9-10% impacted the flats segment.
Raw material costs: Coking coal prices declined last quarter as projected, though the benefit was partially offset by higher iron ore prices. Looking ahead to Q4, coking coal prices are expected to decrease by approximately $10/t.
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