|
Jindal
Steel & Power consolidated net sales increased 67.04% to Rs 13611.71 crore
in Q2FY22 compared toQ2FY21. Sales of
Iron & Steel segment has gone up 70.54% to Rs 13,136.01 crore (accounting
for 90.16% of total sales). Sales of
Power segment has gone up 9.09% to Rs 1,032.42 crore (accounting for 7.09% of
total sales). Sales of Others segment
rose 22.30% to Rs 401.81 crore (accounting for 2.76% of total sales). Inter-segment sales rose Rs 828.59 crore to
Rs 958.53 crore.
Operating
profit margin has jumped from 29.39% to 33.75%, leading to 91.84% rise in
operating profit to Rs 4,594.12 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 26.97% to 35.18%.
Purchase of finished goods cost fell from 7.62% to 2.81%. Employee cost decreased from 2.67% to
1.66%. Other expenses fell from 31.79%
to 25.86%. Preoperation capitalised
expenses fell from 0.17% to 0.09%.
Other
income fell 97.41% to Rs 3.78 crore.
PBIDT rose 80.96% to Rs 4597.9 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 111.76% to Rs 4,042.64 crore.
PBIT of Iron & Steel segment rose 123.61% to Rs 3,585.86 crore
(accounting for 88.70% of total PBIT).
PBIT of Power segment rose 48.85% to Rs 364.66 crore (accounting for
9.02% of total PBIT). PBIT of Others
segment rose 52.42% to Rs 92.12 crore (accounting for 2.28% of total
PBIT).
PBIT
margin of Iron & Steel segment rose from 20.82% to 27.30%. PBIT margin of Power segment rose from 25.89%
to 35.32%. PBIT margin of Others segment
rose from 18.40% to 22.93%. Overall PBIT
margin rose from 21.26% to 27.75%.
Provision
for interest fell 31.24% to Rs 481.69 crore.
PBDT rose 123.67% to Rs 4116.21 crore.
Provision for depreciation fell 0.36% to Rs 609.61 crore.
Profit
before tax grew 185.44% to Rs 3,506.60 crore.
Provision for tax was expense of Rs 922.69 crore, compared to Rs 331.55
crore. Effective tax rate was 26.31%
compared to 26.99%.
Net
profit attributable to owners of the company increased 208.90% to Rs 2,584.22
crore.
JSPL’s
sales volume surged 32% QoQ and 10% YoY to hit a record of 2.13 million tonne
during the quarter. The company continues to benefit from buoyant export
markets as share of exports in overall volumes increased to more than 40% in 2QFY22
compared to 34% in Q1FY22 (38% in Q2FY21). Exports have become key channel of
sales for the company, especially in times of subdued domestic demand.
Equity
capital increased from Rs 102.00 crore as of 30 September 2020 to Rs 102.01
crore as of 30 September 2021. Per share
face Value remained same at Rs 1.00.
Promoters’
stake was 60.47% as of 30 September 2021 compared to 60.47% as of 30 September
2020. Promoters pledged stake was 39.50%
as of 30 September 2021 compared to 50.37% as of 30 September 2020.
For year-to-date
(YTD) results analysis
Net
sales (including other operating income) of Jindal Steel & Power has
increased 65.25% to Rs 24221.18 crore.
Sales of Iron & Steel segment has gone up 68.01% to Rs 23,379.26
crore (accounting for 89.62% of total sales).
Sales of Power segment has gone up 17.24% to Rs 2,061.12 crore
(accounting for 7.90% of total sales).
Sales of Others segment rose 11.12% to Rs 645.59 crore (accounting for
2.47% of total sales). Inter-segment
sales rose Rs 1,588.35 crore to Rs 1,864.76 crore.
Operating
profit margin has jumped from 28.62% to 37.71%, leading to 117.70% rise in
operating profit to Rs 9,133.08 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 30.19% to 32.33%.
Purchase of finished goods cost fell from 6.45% to 3.47%. Employee cost decreased from 2.89% to 1.78%. Other expenses fell from 31.19% to
25.71%. Preoperation capitalised
expenses fell from 0.18% to 0.12%.
Other
income fell 74.67% to Rs 37.45 crore.
PBIDT rose 111.15% to Rs 9170.53 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 147.43% to Rs 8,063.73 crore.
PBIT of Iron & Steel segment rose 173.10% to Rs 7,256.38 crore
(accounting for 89.99% of total PBIT).
PBIT of Power segment rose 41.15% to Rs 664.05 crore (accounting for
8.24% of total PBIT). PBIT of Others
segment rose 8.97% to Rs 143.30 crore (accounting for 1.78% of total
PBIT).
PBIT
margin of Iron & Steel segment rose from 19.09% to 31.04%. PBIT margin of Power segment rose from 26.76%
to 32.22%. PBIT margin of Others segment
fell from 22.63% to 22.20%. Overall PBIT
margin rose from 20.05% to 30.91%.
Provision
for interest fell 32.07% to Rs 1042.45 crore.
PBDT rose 189.40% to Rs 8128.08 crore.
Provision for depreciation fell 0.49% to Rs 1211.85 crore.
Profit
before tax grew 334.75% to Rs 6,916.23 crore. Provision for tax was expense of
Rs 1816.61 crore, compared to Rs 458.23 crore.
Effective tax rate was 32.21% compared to 28.80%.
Net
profit attributable to owners of the company increased 289.09% to Rs 3,851.27
crore.
The
first half of FY22 further showcases the company’s operational flexibility
under challenging market conditions helping the company to post a solid
production growth of 12% YoY and sales growth of 7% YoY. Resilient operational
performance in H1FY22 and anticipated pick up in domestic construction
activities in H2 gives confidence to achieve its full year production target of
8.0-8.5 million tonne.
JSPL Standalone
Performance
During
Q2FY22, JSPL Standalone reported highest ever steel sales (incl. pig iron) of
2.13 million tonne (Up 32% QoQ). Sales volumes during the quarter were ahead of
production of 1.93 million tonne, resulting in inventories declining
sequentially. Inventory levels for the company have normalised in Q2FY22 from
higher levels seen in Q1. Higher internal consumption also resulted in external
sales of pellets falling to 0.20 million tonne (down 49% QoQ).
Higher
volumes and improved steel prices led to JSPL reporting record gross revenues
of Rs 14,550 crore. However, sharp rise in iron ore costs due to exhaustion of
low cost inventory, higher coking coal costs (including associated freight
costs) and lower pellet sales resulted in EBITDA being reported at Rs 4,519
crore. Strong operating profit and declining finance costs have all contributed
in JSPL posting profit after tax (PAT) of Rs 2711 crore (up 2% QoQ).
Global Ventures
Mozambique: Chirodzi mine
produced 954 KT ROM (up 9% YoY) in 2QFY22. Mozambique operations reported
2QFY22 EBITDA of US$ 17.2mn (up 417% QoQ) on rising coking coal prices.
South Africa: Kiepersol mine in
South Africa produced 181 KT ROM (up 22% QoQ). The mine reported an EBITDA of
US$ 1.8mn for the quarter on the back of improved coal prices.
Australia: Russell Vale mine
has started production post receiving the final go ahead from the regulatory
authorities. JSPL is expected to get the first shipment in the current month
(November 2021). Wongawilli colliery continues to remain under care &
maintenance as WCL (Wollongong Coal Limited) continues to work towards securing
additional approval for restarting the mine.
Outlook by the
company
India
has recently hit the 100-Crore vaccination milestone with more than 75% of the
eligible population having taken the first dose. Steady vaccination ramp-up and
easing of COVID related restrictions are likely to help in broadening the
recovery, and external demand conditions remain supportive. After remaining
subdued in 1HFY22, construction and infrastructure activities are expected to
recover strongly in H2FY22 as seasonally strong demand period sets in. This
bodes well for JSPL with two thirds of its product portfolio catering largely
to India’s Construction & Infrastructure sector.
Taking
a cue from falling seaborne iron ore prices, the domestic iron ore prices have
also been declining for the past three months. This could aid margins for the
company going forward with three fourth of this key raw material sourced from
third parties at this juncture. Start of operations from Kasia mine by end of
Q3FY22 along with the operating Tensa mine is expected to provide more than 70%
iron ore security for the Company’s steel operations. The domestic steel
industry however continues to grapple with the sharp rise in the coking coal
prices. Premium Hard Coking coal has risen by 180% so far in FY22 and currently
trading close to USD400/t levels. However, resumption of our Russel Vale mine
in Australia will provide some relief from rising coking coal costs, with first
shipment expected in November 21.
The
scrip is currently trading at Rs 422
|
Jindal Steel & Power : Consolidated Results
|
|
Particulars
|
2109 (03)
|
2009 (03)
|
Var.(%)
|
2109 (06)
|
2009 (06)
|
Var.(%)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Net Sales
|
13,611.71
|
8,148.77
|
67
|
24,221.18
|
14,657.28
|
65
|
34,540.54
|
30,464.56
|
13
|
|
OPM (%)
|
33.75
|
29.39
|
|
37.71
|
28.62
|
|
37.9
|
22.37
|
|
|
OP
|
4,594.12
|
2,394.72
|
92
|
9,133.08
|
4,195.31
|
118
|
13,091.26
|
6,814.66
|
92
|
|
Other Inc.
|
3.78
|
146.11
|
-97
|
37.45
|
147.87
|
-75
|
532.01
|
26.24
|
1927
|
|
PBIDT
|
4,597.90
|
2,540.83
|
81
|
9,170.53
|
4,343.18
|
111
|
13,623.27
|
6,840.90
|
99
|
|
Interest
|
481.69
|
700.53
|
-31
|
1,042.45
|
1,534.54
|
-32
|
2,753.34
|
3,767.88
|
-27
|
|
PBDT
|
4,116.21
|
1,840.30
|
124
|
8,128.08
|
2,808.64
|
189
|
10,869.93
|
3,073.02
|
254
|
|
Depreciation
|
609.61
|
611.82
|
0
|
1211.85
|
1217.77
|
0
|
2414.13
|
3428.87
|
-30
|
|
PBT
|
3,506.60
|
1,228.48
|
185
|
6916.23
|
1590.87
|
335
|
8455.80
|
-355.85
|
LP
|
|
Share of Profit/(Loss) from
Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0.00
|
0
|
-
|
|
PBT before EO
|
3506.6
|
1228.48
|
185
|
6916.23
|
1590.87
|
335
|
8455.80
|
-355.85
|
LP
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
-203.92
|
64.6
|
-
|
|
PBT after EO
|
3506.6
|
1228.48
|
185
|
6916.23
|
1590.87
|
335
|
8251.88
|
-291.25
|
LP
|
|
Taxation
|
922.69
|
331.55
|
178
|
1816.61
|
458.23
|
296
|
1810.81
|
108.45
|
999
|
|
PAT
|
2583.91
|
896.93
|
188
|
5099.62
|
1132.64
|
350
|
6441.07
|
-399.7
|
LP
|
|
Minority Interest (MI)
|
-0.31
|
60.33
|
LP
|
-27.87
|
142.83
|
LP
|
289.25
|
-290.53
|
PL
|
|
Net profit
|
2584.22
|
836.6
|
209
|
5127.49
|
989.81
|
418
|
6151.82
|
-109.17
|
LP
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
62.3
|
|
LP
|
|
Notes
|
|
* EPS is on current equity of Rs
102.01 crore, Face value of Rs 1, Excluding extraordinary items.
|
|
# EPS is not annualised
|
|
bps : Basis points
|
|
EO : Extraordinary items
|
|
Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|
Jindal Steel & Power : Consolidated Segment Results
|
|
|
Quarter
ended
|
Year
to Date
|
Year
ended
|
|
|
% of (Total)
|
202109
|
202009
|
Var.(%)
|
% of (Total)
|
202109
|
202009
|
Var.(%)
|
% of (Total)
|
202103
|
202003
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Iron & Steel
|
90
|
13,136.01
|
7,702.44
|
71
|
90
|
23,379.26
|
13,915.64
|
68
|
88
|
33,191.92
|
25,496.41
|
30
|
|
Power
|
7
|
1,032.42
|
946.37
|
9
|
8
|
2,061.12
|
1,758.03
|
17
|
10
|
3,678.83
|
6,855.45
|
-46
|
|
Others
|
3
|
401.81
|
328.55
|
22
|
2
|
645.59
|
580.96
|
11
|
3
|
952.05
|
1,193.52
|
-20
|
|
Total Reported Sales
|
100
|
14,570.24
|
8,977.36
|
62
|
100
|
26,085.97
|
16,254.63
|
60
|
100
|
37,822.80
|
33,545.38
|
13
|
|
Less: Inter segment revenues
|
|
958.53
|
828.59
|
16
|
|
1,864.76
|
1,588.35
|
17
|
|
3,282.26
|
3,080.82
|
7
|
|
Net Sales
|
|
13,611.71
|
8,148.77
|
67
|
|
24,221.21
|
14,666.28
|
65
|
|
34,540.54
|
30,464.56
|
13
|
|
PBIT
|
|
|
|
|
|
Iron & Steel
|
89
|
3,585.86
|
1,603.60
|
124
|
90
|
7,256.38
|
2,657.03
|
173
|
89
|
10,066.54
|
3,267.40
|
208
|
|
Power
|
9
|
364.66
|
244.99
|
49
|
8
|
664.05
|
470.46
|
41
|
8
|
932.27
|
586.67
|
59
|
|
Others
|
2
|
92.12
|
60.44
|
52
|
2
|
143.3
|
131.5
|
9
|
2
|
268.64
|
559.74
|
-52
|
|
Total PBIT
|
100
|
4,042.64
|
1,909.03
|
112
|
100
|
8,063.73
|
3,258.99
|
147
|
100
|
11,267.45
|
4,413.81
|
155
|
|
Less : Interest
|
|
481.69
|
700.53
|
-31
|
|
1,042.45
|
1,534.54
|
-32
|
|
2,753.34
|
3,767.88
|
-27
|
|
Add: Other un-allcoable
|
|
-54.35
|
19.98
|
PL
|
|
-105.05
|
-124.58
|
-16
|
|
-262.23
|
-1,111.17
|
-76
|
|
PBT
|
|
3,506.60
|
1,228.48
|
185
|
|
6,916.23
|
1,599.87
|
332
|
|
8,251.88
|
-465.24
|
LP
|
|