Jindal Steel & Power's Q3 financials show decline in profitability and sales.

Jindal Steel & Power, a largecap company in the steel/sponge iron/pig iron industry, recently declared its financial results for the quarter ending September 2024. However, the news may not be positive for investors as MarketsMOJO has given a 'Sell' call for the company's stock.

According to the financials, Jindal Steel has seen a negative performance in the quarter, with a score of -19 compared to -1 in the previous three months. This indicates a decline in the company's financial health.

One of the major factors contributing to this negative trend is the decline in Profit Before Tax (PBT) and Profit After Tax (PAT). The PBT has fallen by 23.9% to Rs 1,178.44 crore, while the PAT has fallen by 38.4% to Rs 860.90 crore, compared to the average of the previous four quarters. This shows a significant decrease in the company's profitability in the near term.

The Net Sales of Jindal Steel has also seen a decline of 12.1% to Rs 11,213.31 crore in the quarter, compared to the average of the previous four quarters. This indicates a negative trend in the company's sales performance.

Moreover, the company's ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters. The company's cash and cash equivalents have also decreased to the lowest in the last six half-yearly periods, indicating a decline in short-term liquidity.

In conclusion, Jindal Steel & Power's financial performance for the quarter ending September 2024 has been negative, with a decline in profitability and sales. This has led to a 'Sell' call by MarketsMOJO for the company's stock.