Shares of multibagger Jindal Steel & Power Ltd (JSPL) hit a record high in early trade today after the firm reported a 272 percent rise in consolidated net profit for the quarter ended December 2023.
Consolidated net profit climbed to Rs 1,928 crore for the third quarter of FY24, logging a gain of 272 percent compared to a consolidated net profit of Rs 518 crore in Q3FY23. A stellar show in Q3 can be attributed to recent price hikes and improved realisations amid a robust domestic demand environment.
JSPL stock zoomed 1.71% to Rs 769.95 against the previous close of Rs 757 on BSE. Market cap of Jindal Steel rose to Rs 78,541 crore.
JSPL stock has gained 3.67 per cent since the beginning of this year and risen 32 per cent in one year. JSPL shares have delivered multibagger returns of 194% in the last three years.
A total of 1.45 lakh shares of the firm changed hands amounting to a turnover of Rs 8.68 crore on BSE.
The stock has a one-year beta of 0.2, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Jindal Steel stands at 60.8, signaling the stock is neither oversold nor overbought. Jindal Steel stock is trading higher than the 10 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The metal firm’s consolidated net revenue in the October-December quarter fell 5.9 percent to Rs 11,736 crore amid lower volumes. On a sequential basis, revenue fell 4 percent while net profit jumped 38.7 percent.
On a standalone basis, Jindal Steel logged a net profit of Rs 1,484 crore compared to a loss of Rs 4,512 crore reported in the Q3 of last fiscal. Gross revenue for the quarter came at Rs 13,485 crore, down 3% from last year.
"Robust performance was driven by improved NSR (net sales realisation) supported by lower raw material cost as benefits from captive thermal coal mines in India starts materialising, partly offset by lower volumes during the quarter," the company said.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for Q3FY24 came at Rs 2,802 crore, 19 percent higher on a year on year basis. Net debt rose 18 percent to Rs 9,115 crore as of December 31, 2023.
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