Steep Profit Decline Despite Revenue Growth
Jindal Saw Limited, one of India's premier pipemanufacturers, has reported a dramatic 82% year-on-year decline in net profitfor the fourth quarter of the 2024-25 fiscal year. The company's net profitfell to ₹63.82 crore ($7.65 million) in the January-March 2025 quarter, downfrom ₹354.56 crore ($42.5 million) in the same period of the previous fiscalyear. This sharp decline comes despite a modest 4.5% increase in sales revenue,which rose to ₹4,843 crore ($580.7 million) from ₹4,633 crore ($555.4 million)year-on-year, highlighting significant pressure on the company's profit marginsdespite maintaining sales growth.
Operating Expenses Surge Erodes Profitability
The company's financial performance was significantlyimpacted by a substantial increase in operating expenses. Jindal Saw saw itstotal expenses rise by 15.3% year-on-year to ₹4,759 crore ($570.5 million) inQ4 FY 2024-25, compared to ₹4,126 crore ($494.6 million) in the correspondingquarter of the previous fiscal year. This expense surge outpaced revenue growthby a considerable margin, creating a substantial squeeze on profit margins. Theincreased costs were attributed to higher raw material prices, elevated energycosts, and increased operational expenses across the company's manufacturingfacilities, reflecting broader inflationary pressures affecting the steel andpipe manufacturing sectors.
Full Fiscal Year Shows Similar Trend
For the full fiscal year 2024-25, Jindal Saw's performancefollowed a similar pattern, with net profit declining by 36.5% to ₹706 crore($84.6 million) from ₹1,112 crore ($133.3 million) in FY 2023-24. Annual salesrevenue, however, increased by 6.2% to ₹17,861 crore ($2.14 billion) from₹16,817 crore ($2.02 billion) in the previous fiscal year. The annual figuresconfirm that the pressure on profit margins was not limited to the fourthquarter but represented a consistent challenge throughout the fiscal year,suggesting structural issues rather than seasonal fluctuations in the company'soperating environment.
Key Takeaways:
• Jindal Saw Limited's net profit plunged 82% year-on-yearto ₹63.82 crore ($7.65 million) in Q4 FY 2024-25 despite a 4.5% increase insales revenue.
• The company's total expenses surged 15.3% to ₹4,759 crore($570.5 million), significantly outpacing revenue growth and squeezing profitmargins.
• For the full fiscal year 2024-25, Jindal Saw's net profitdeclined 36.5% to ₹706 crore ($84.6 million) while annual sales revenueincreased by 6.2%.
