Jindal Steel & Power Ltd (Q2 FY14)

India Infoline News Service | Mumbai |

JSPL’s standalone revenue increased 1.9% yoy to Rs36.6bn, higher than our estimate of Rs34.4bn.

CMP Rs250, Target Rs276, Upside 10.4%

  • Standalone revenue of Rs36.6bn was higher than our estimate on the back higher volumes

  • Inventory liquidation during the quarter aided the company in registering a 11.3% yoy growth in steel sales volumes

  • Blended steel realizations jumped were lower on

  • Standalone power sales volumes declined on a qoq due to issues at Angul and higher internal consumption

  • Standalone operating profit of Rs9.8bn was higher than our estimate due to higher volumes

  • JPL’s power production continued to improve, registering a PLF of 95%

  • Earnings to take centre stage; Maintain BUY with a revised 9-month price target of Rs276      

Result table (Standalone)
(Rs mn)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Net sales
36,556
35,890
1.9
34,252
6.7
Material costs
(12,553)
(10,809)
16.1
(12,752)
(1.6)
Power and fuel costs
(2,537)
(2,605)
(2.6)
(2,240)
13.3
Personnel costs
(1,344)
(1,046)
28.4
(1,314)
2.3
Other overheads
(10,290)
(8,822)
16.6
(9,470)
8.7
Operating profit
9,833
12,607
(22.0)
8,477
16.0
OPM (%)
26.9
35.1
(823) bps
24.7
215 bps
Depreciation
(3,036)
(2,489)
22.0
(3,036)
(0.0)
Interest
(3,337)
(1,779)
87.6
(2,318)
43.9
Other income
56
74
(24.7)
63
(10.9)
PBT
3,516
8,413
(58.2)
3,185
10.4
Tax
(950)
(2,591)
(63.4)
(796)
19.2
Effective tax rate (%)
27.0
30.8

25.0

Adjusted PAT
2,567
5,822
(55.9)
2,389
7.5
Adj. PAT margin (%)
7.0
16.2
(920) bps
7.0
5 bps
Reported PAT
2,567
5,822
(55.9)
2,389
BSE 165.00 3.50 (2.17%)
NSE 164.95 3.15 (1.95%)

***Note: This is a NSE Chart

 

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