Jindal Steel & Power Ltd reports consolidated net profit of Rs116cr in Q2FY19 vs. net loss of Rs369cr in Q2FY18: Beats Estimates

The company’s consolidated revenue in the period stood at Rs9,982cr, up 63% yoy and 3.3% qoq

Nov 13, 2018 11:11 IST India Infoline Research Team

Jindal Steel & Power Ltd Q2FY19

Consolidated Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 9,982 63.0
EBITDA 2,207 60.7
EBITDA Margin (%) 22.1 [31]
Net Profit (adjusted) 116 NA
***EBITDA margin change is bps

Jindal Steel and Power Ltd's Q2FY19 numbers beat the consensus estimates by a clear margin due to a strong performance from the domestic steel business. Revenue grew 63% yoy to Rs9,982cr (expectation Rs9,134cr). EBITDA stood at Rs2,207cr, up 60.7% yoy against the estimates of Rs2,022cr. EBIDTA margin fell 31bps yoy to 22.1%. Adjusted net profit stood at Rs116cr as against an expectation of Rs3cr.
  • Standalone steel sales for Q2FY19 stood at 1.28mn ton, up 53% yoy, while consolidated steel sales stood at 1.75mn ton, up 38% yoy.
  • JSPL's financial performance in the standalone segment remained strong in spite of higher raw material costs in Q2FY19. Revenue for the quarter stood at Rs6,849cr (up 86.7% yoy), while EBITDA stood at Rs1,452cr (up 85.2% yoy).
  • Poor coal availability continued to impact the generation volumes of Jindal Power. Generation volumes for the quarter stood at 2,427mn units, flat yoy. However, better realizations helped revenues rise 3.8% yoy to Rs911cr. EBITDA margin contracted 614bps yoy due to higher coal costs. Cash profit for the power business stood at Rs150cr for the quarter, down 20% yoy.
  • Jindal Shadeed recorded crude steel production at 0.38mn ton in the quarter, down 11.6% yoy. This was due to a maintenance shutdown in September. EBITDA for Jindal Shadeed stood at $46mn for the quarter, down 16.4% yoy.
  • The Mozambique and Wongawilli mines recorded a production of 0.5mn ton (up 84.5% qoq) and 115,000 ton (up 15% qoq), respectively, in Q2FY19. The Russel Vale mines continue to remain under care and maintenance. The Mozambique mining operations turned EBITDA-positive in Q2FY19 after reporting an EBITDA of $5.7mn.

Technical View:

Jindal Steel & Power Ltd ended at Rs182.40, up 1.35 points, or 0.75%, from its previous close of Rs181.05 on the BSE. The scrip opened at Rs180.80 and touched a high and low of Rs183.50 and Rs174.30, respectively. A total of 1,01,16,024 (NSE+BSE) shares were traded on the counter. The stock traded above its 200-DMA.

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