Jindal Steel & Power Ltd consolidated net profit of Rs110cr in Q1FY19 vs. net loss of Rs421cr in Q1FY18 : Misses Estimates

The company’s consolidated revenue stood at Rs9,665cr, up 57.7% yoy and 12.4% qoq.

Aug 09, 2018 12:08 IST India Infoline Research Team

Jindal Steel & Power Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 9,665 57.8
EBITDA 2,277 68.3
EBITDA Margin (%) 23.6 147
Net Profit (adjusted) 110 0
***EBITDA margin change is bps

Jindal Steel and Power missed consensus estimates for earnings in Q1FY19 as earnings for Jindal Power were impacted due to high fuel costs. Revenue grew by 57.8% yoy to Rs9,665cr (expectation Rs8,953cr). EBITDA stood at Rs2,277cr, up 68.3% yoy against estimates of Rs2,237cr. EBIDTA margin rose by 147bps yoy to 23.6%. Net Profit stood at Rs110cr (expectation of Rs130cr).
  • Standalone steel sales for Q1FY19 stood at 1.19mn tonnes, a 46% yoy increase. This was due to the successful ramp up of production at Angul. Consolidated steel sales stood at 1.61mn tonnes, up 40% yoy.
  • JSPL's financial performance for the standalone segment continued to remain strong due to the production ramp up at Angul. Revenue for the quarter stood at Rs6,734cr (up 100% yoy), while EBITDA stood at Rs1,645cr (up 119% yoy).
  • Improved coal availability on qoq improved the generation of Jindal Power. As a result, Jindal Power generated 2,751mn units, up 19% qoq. However, EBITDA for the power business fell by 33% to Rs314cr due to sharp increase in fuel costs. EBITDA margin contracted by 1094bps yoy. The cash profit for the power business stood at Rs167cr for the quarter, down 46% yoy.
  • Jindal Shadeed recorded a production of 0.43mn tonnes of crude steel with an EBITDA of $68mn.
  • The Mozambique and Wongawilli mines recorded a production of 271k tonnes and 100k tonnes respectively in Q1FY19. The Russel Vale mines continue to remain under care and maintenance.

Technical View:

Jindal Steel & Power Ltd ended at Rs. 217, up by 0.2 points or 0.09% from its previous closing of Rs. 216.80 on the BSE.
The scrip opened at Rs. 218.50 and touched a high and low of Rs. 224.70 and Rs. 214.20 respectively. A total of 1,18,82,520 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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