Other income rose 70% to Rs 90.41 crore compared to Rs 53.28 crore in the corresponding previous year quarter while interest cost doubled to Rs 535.45 crore. Depreciation increased 58% to Rs 667.12 crore. PBT fell 23% to Rs 516.82 crore. Effective rate of tax fell to 22.3% compared to 25.1% in the corresponding previous year period resulting 20% fall in PAT to Rs 401.58 crore. Considering minority interest and share of associate's net profit fell 15% during the quarter to Rs 418.13 crore.
15% fall in net profit was mainly due to increase in depreciation and financing costs and restructuring costs of WCL, Australia.
Segment wise Consolidated PBIT margin of Iron and steel segment increased by 80 bps to 19.1% while PBIT margin of power segment fell by 340 bps to 45%.
JSPL's new pellet plant with a capacity of 4.5 MTPA went into operation during Q1FY15; however the production had to be curtailed due to restricted availability of iron ore fines. Both Blast Furnaces and two EAFs were upgraded. With these, the modernisation of Iron & Steel shops at Raigarh was completed and the plant's capacity has been enhanced to 3.5 MTPA as against 3.0 MTPA earlier. JSPL's Net Sales Realization increased by 8% in Q1FY15 compared to same quarter last year. The company continued its relentless effort to reduce its working capital, which resulted in its Finished Good inventory reduce by 27% to an all-time low of 207,731MT.
JSPL's retail sales grew by an impressive 26% during Q1FY15 compared to Q4FY14 and by 284% compared to Q1FY14. With this, the company consolidated its presence in retail market on a country wide basis. Although Rupee's strengthening against US$ adversely affected the price competitiveness, JSPL increased their exports by 6% in volume terms during Q1FY15. Company successfully entered the High Grade plate and structural steel market of US, Canada and Mexico.
JPL successfully completed 3 out of the 4, 600 MW Power Units of JPL under Tamnar Phase II but only one unit was operated during the quarter. With improved availability of coal and transmission capacity, the company is hopeful to operate other units. JPL's Phase - I, 1000 MW plant was operated at 97.8% PLF. The average Net Sales Realization for Q1FY15 of JPL was at Rs. 3.29 compared to Rs. 3.21 in Q1FY14.
JSPL's 4x135 MW captive power plant at Dongamuha, achieved substantial improvement in its availability and PLF, as a result of which it posted impressive increase in its profitability. Although, all 6 x 135 MW units of Angul Power plant have been commissioned, the utilization remained low due to restrictions on export of power.
JSPL Global Venture's SMS plant in Oman was successfully completed in April, 2014 and the billet deliveries to the market started from May 2014. The plant's PBT in Q1FY15 increased by 180 % compared to Q1FY14. However, Company's WCL Australia's coking coal mines continued to make losses due to operational reasons and restructuring costs. A major restructuring of WCL was undertaken under which the manpower has been reduced by 38% compared to Q4FY 14.
Consolidated Quarterly Performance
The consolidated income from operations increased 10% to Rs 4978.38 crore in Q1FY'15 compared to Q1FY'14 as Iron and steel revenues rose by 12% to Rs 4024.62 crore and Power sales were up by 19% to Rs 1290.66 crore. The sales of others were down 53% to Rs 111 crore. The OPM increased 300 bps to 32.7% as other expenses as a percentage of adjusted net sales fell 190 bps to 15%, cost of material consumed fell 310 bps to 28.2%, stores and spares consumed fell 100 bps to 9.2% limited by 20 bps rise in purchase of stock in trade to 0.9%, 110 bps increase in employee benefit expense to 5% and 110 bps increase in power and fuel expenses to 9.7%.
Thus the operating profit rose by 25% to Rs 1628.98 crore. Other income rose 70% to Rs 90.41 crore compared to Rs 53.28 crore in the corresponding previous year quarter while interest cost doubled to Rs 535.45 crore. Depreciation increased 58% to Rs 667.12 crore. PBT fell 23% to Rs 516.82 crore. Effective rate of tax fell to 22.3% compared to 25.1% in the corresponding previous year period resulting 20% fall in PAT to Rs 401.58 crore. Considering minority interest and share of associate's net profit fell 15% during the quarter to Rs 418.13 crore.
Consolidated Year ended Performance
The consolidated income from operations increased 1% to Rs 20004.04 crore. The OPM decreased 470 bps to 33.7% resulting into 13% decrease in operating profit to Rs 5776.4 crore. Other income fell 52% to Rs 65.63 crore while interest cost was up 75% to Rs 1500.82 crore. Depreciation increased 19% to Rs 1829.2 crore. PBT before EO fell 43% to Rs 2512.01 crore. The company had an nil EO expense in FY'14 compared to EO expense of Rs 574.12 crore in FY'13 related to provision set aside for the investments made in Bolivia by the company that has been impaired. The company had made strategic business investment in Bolivia through its subsidiaries in Bolivia. On account of non fulfillment of contractual obligations by the Government of Bolivia, Jindal Steel Bolivia SA terminated the El Mutan Joint Venture contract with the Government of Bolivia. Therefore, the investment made by company in El Mutan Joint Venture Project & other Operations have been impaired.
PBT after EO fell 34%. Effective rate of tax rose 60 bps to 24.6% resulting 35% fall in PAT to Rs 1893.8 crore. Considering minority interest and share of associate's net profit fell 34% during the year to Rs 1910.36 crore.
The scrip is currently trading at Rs 283.6
Jindal Steel and Power: Consolidated Results
|Particulars||1406 (3)||1306 (3)||Var (%)||1403 (12)||1303 (12)||Var (%)|
|Income from Operations||4978.38||4540.27||10||20004.04||19806.78||1|
|PBT before EO||516.82||669.29||-23||2512.01||4407.57||-43|
|PBT after EO||516.82||669.29||-23||2512.01||3833.45||-34|
|Share of Profit/Loss of Associates excluding EO||3.26||6.62||-51||2.55||40.2||-94|
* Annualized on current equity of Rs 91.49 crore; Face Value of Rs 1
Figures in Rs crore
Var(%) exceeding 999 has been truncated to 999
LP : Loss to profit; PL : Profit to loss
EO: Extraordinary item
EPS is calculated after excluding EO and relevant tax
Source : Capitaline Corporate Database
Jindal Steel_Power: Consolidated Segment wise Results
|Particulars||1406 (3)||1306 (3)||% of total||Var (%)||1403 (12)||1303 (12)||% of total||Var (%)|
|Iron and Steel||4024.62||3606.74||74||12||16439.98||16329.76||76||1|
|Less: Inter Segment Revenues||447.90||387.24||16||1656.39||1617.24||2|
|Net Revenue from operation||4978.38||4540.27||10||20004.04||19806.78||1|
|Iron and Steel||767.16||660.10||69||16||3328.77||3915.44||133||-15|
|Less: Unallocable exp/Income||66.13||223.73||1191.33||1021.74|
|Net Profit/Loss Before Tax||516.82||669.28||-23||2512.01||3833.45||-34|
|Iron and Steel||21,749.49||15718.77||94||38||21,166.68||14955.84||94||42|
|Total Capital Employed||23030.03||21747.69||100||6||22610.54||25548.64||100||-12|
Figures in Rs crore
Var (%) exceeding 999 has been truncated to 999
Source: Capitaline Corporate Database
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