Jindal Steel & Power Ltd (Q3 FY14)

India Infoline News Service | Mumbai |

JSPL’s stock has underperformed over the last one year on account of issues related to allocation of coal blocks.

CMP Rs254, Target Rs276, Upside 8.7% 
  • Standalone results were better than expected on the back of improved performance by the power division

  • Revenue of Rs37.8bn was higher than our estimate, boosted by higher volumes in steel and power

  • Standalone power production jumped 5.5% yoy and 25.2% qoq due to higher PLF at its Angul plant

  • Standalone operating profit of Rs12.1bn was quite higher than our estimate due to improved power division performance and higher contribution from others category

  • JPL’s bottomline was impacted by lower spot power prices

  • Downgrade to Market Performer with a price target of Rs276      

Result table (Standalone)
(Rs mn)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Net sales
37,767
38,209
(1.2)
36,556
3.3
Material costs
(11,927)
(13,218)
(9.8)
(12,553)
(5.0)
Power and fuel costs
(2,953)
(2,368)
24.7
(2,537)
16.4
Personnel costs
(1,325)
(1,079)
22.8
(1,344)
(1.4)
Other overheads
(9,464)
(8,764)
8.0
(10,290)
(8.0)
Operating profit
12,098
12,781
(5.3)
9,833
23.0
OPM (%)
32.0
33.4
(141) bps
26.9
514 bps
Depreciation
(2,985)
(2,543)
17.4
(3,036)
(1.7)
Interest
(3,667)
(2,876)
27.5
(3,337)
9.9
Other income
9
39
(76.0)
56
(83.2)
PBT
5,456
7,401
(26.3)
3,516
55.2
Tax
(1,800)
(2,196)
(18.0)
(950)
89.6
Effective tax rate (%)
33.0
29.7

27.0

Adjusted PAT
3,656
5,205
(29.8)
2,567
42.4
Adj. PAT margin (%)
9.7
13.6
(394) bps
7.0
266 bps
Reported PAT
3,656
5,205
(29.8)
2,567
BSE 165.00 3.50 (2.17%)
NSE 164.95 3.15 (1.95%)

***Note: This is a NSE Chart

 

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