Jindal Steel & Power Ltd's Q3FY19 consolidated net loss narrows to Rs87cr yoy : Beats Estimates

The company’s consolidated revenue stood at Rs9,580cr, up 37% yoy but down 4% qoq.

Feb 02, 2019 04:02 IST India Infoline Research Team

Jindal Steel & Power Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 9,580 37.0
EBITDA 2,077 29.2
EBITDA Margin (%) 21.7 [130]
Net Loss (adjusted) 87 NA
***EBITDA margin change is bps

Jindal Steel and Power's (JSPL) results beat consensus estimates by a slight margin in Q3FY19. Revenue grew by 37% yoy to Rs9,580cr (expectation Rs9,574cr). EBITDA stood at Rs2,077cr, up 29.2% yoy against estimates of Rs2,041cr. EBIDTA margin fell by 130bps yoy to 21.7%. Adjusted Net Loss stood at Rs87cr (expectation of a net loss of Rs42cr).
  • Standalone steel sales for Q3FY19 stood at 1.2mn tonnes, a 27.7% yoy increase. Consolidated steel sales stood at 1.65mn tonnes, up 21.3% yoy.
  • JSPL's financial performance for the standalone segment remained strong supported by a slight reduction in raw material costs in Q3FY19. Revenue for the quarter stood at Rs6,745cr (up 57.9% yoy), while EBITDA stood at Rs1,480cr (up 60.7% yoy).
  • Poor coal availability continued to impact the generation volumes of Jindal Power. Generation volumes for the quarter stood at 2,609mn units, down 12% yoy. Revenues for the quarter fell by 14% yoy to Rs1,004cr. EBITDA margin contracted by 318bps yoy due to higher coal costs and lower generation volumes. The cash profit for the power business stood at Rs131cr for the quarter, down 29% yoy.
  • Jindal Shadeed recorded a production of 0.46mn tonnes of crude steel, up by 10% yoy. EBITDA for Jindal Shadeed stood at $32mn for the quarter, down 49% yoy due to weak global steel prices.
  • The Wongawilli mine recorded a production of 86k tonnes, up 187% yoy. The Russel Vale mines continue to remain under care and maintenance. The Mozambique mining operation reported an EBITDA of $4mn in Q3FY19.
  • Net Debt to EBITDA at the consolidated level stood at 4.9x at the end of Q3FY19 from 6.6x at the end of Q4FY18. Net debt at the consolidated level stood at Rs39,197cr.

Technical View:

Jindal Steel & Power Ltd ended at Rs. 129.85, down by 5.2 points or 3.85% from its previous closing of Rs. 135.05 on the BSE.
The scrip opened at Rs. 135.80 and touched a high and low of Rs. 137.50 and Rs. 128.50 respectively. A total of 1,41,06,646 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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