Jindal Steel and Power Ltd Reports 38% Drop in Q2 Profit to Rs 860 Crore Amid Revenue Decline, Expands Production Capacity

Jindal Steel and Power Ltd (JSPL) reported a 38% decline in its consolidated net profit for the September quarter, registering Rs 860 crore, down from Rs 1,390 crore in the same period last year. The drop in profit was attributed to a decrease in revenue, with gross income falling to Rs 13,025 crore from Rs 14,128 crore year-over-year.

Despite the lower earnings, JSPL’s steel production rose to 1.97 million tonnes (MT), compared to 1.90 MT in the previous year, while sales dropped slightly to 1.85 MT from 2.01 MT. The company noted a robust capital expenditure (capex) of Rs 2,642 crore for the quarter, primarily directed towards the expansion of its Angul facility. JSPL’s net debt stood at Rs 12,464 crore as of September 30.

International operations showed mixed results. Wollongong Resources Pty Ltd, JSPL’s Australian subsidiary, recorded a net loss after tax of Rs 35.74 crore for the quarter. Additionally, Jindal Steel & Power (Mauritius) Limited reported accumulated losses of Rs 3,467.87 crore and a negative net worth of Rs 2,062.92 crore.

JSPL’s focus on expanding production capacity and reducing debt indicates a strategic approach to navigate challenges posed by fluctuating demand and global economic pressures. The firm remains committed to growth, with investments aimed at strengthening its operational foothold.