|
Jindal
Steel & Power consolidated net sales increased 22.96% to Rs 13045.41 crore
in Q1FY23 compared to Q1FY22. Operating
profit margin has declined from 42.78% to 26.36%, leading to 24.24% decline in
operating profit to Rs 3,438.74 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 29.05% to 45.01%.
Purchase of finished goods cost fell from 4.24% to 3.04%. Employee cost decreased from 1.92% to
1.76%. Other expenses rose from 25.53%
to 26.98%. Preoperation capitalised
expenses rose from 0.17% to 1.12%.
Global
steel Industry continues to face severe margin pressures due to precipitous
fall in steel prices across geographies. After hitting a peak in April 2022,
India export Hot Rolled Coil (HRC) have witnessed a sharp fall with spot prices
down around 40% from the peak. Domestic HRC and rebar prices have followed
export prices and are lower by 20- 25% in the past 3 months. Challenges for the
steel industry were further compounded by rising input costs as coking coal
prices remained elevated for majority of 1QFY23. While the industry continues
to face lower steel prices, benefit of lower coking coal should reflect after a
lag of 45-60 days.
Other
income fell 29.43% to Rs 23.76 crore.
PBIDT fell 24.28% to Rs 3462.5 crore.
Provision for interest fell 35.12% to Rs 363.8 crore.
PBDT
fell 22.76% to Rs 3098.7 crore.
Provision for depreciation fell 1.01% to Rs 596.17 crore.
Profit
before tax down 26.60% to Rs 2,502.53 crore.The company reported EO income of
Rs 60.9 crore on dispossal of Jindal steel and power (Mauritius) ( a 100%
subsidiary of JSP) entire stake compared to nil EO item during Q1FY22. PBT
after EO was down 25% to Rs 2563.39 crore.
Provision
for tax was expense of Rs 573.39 crore, compared to Rs 893.91 crore. Effective tax rate was 22.37% compared to
26.22%.
Net
profit attributable to owners of the company decreased 52.33% to Rs 1,212.11
crore.
Promoters’
stake was 60.45% as of 30 June 2022 ,compared to 60.47% as of 30 June 2021
. Promoters pledged stake was 39.98% as
of 30 June 2022 compared to 39.52% as of 30 June 2021 .
Full year results
analysis
Net
sales of Jindal Steel & Power have increased 47.90% to Rs 51085.56
crore. Operating profit margin has
declined from 37.90% to 30.37%, leading to 18.50% rise in operating profit to
Rs 15,513.44 crore. Raw material cost as
a % of total sales (net of stock adjustments) increased from 25.94% to
36.56%. Purchase of finished goods cost
fell from 5.67% to 4.47%. Employee cost
decreased from 2.39% to 1.68%. Other
expenses fell from 27.88% to 27.38%.
Preoperation capitalised expenses rose from 0.11% to 0.15%.
Other
income fell 90.53% to Rs 50.36 crore.
PBIDT rose 14.24% to Rs 15563.8 crore.
Provision for interest fell 31.44% to Rs 1887.71 crore. Loan funds declined from Rs 29,909.69 crore
as of 31 March 2021 to Rs 13,501.64 crore as of 31 March 2022. Inventories rose to Rs 7,281.36 crore as of
31 March 2022 from Rs 5,942.57 crore as of 31 March 2021. Sundry debtors were lower at Rs 1,264.07
crore as of 31 March 2022 compared to Rs 2,794.40 crore as of 31 March
2021. Cash and bank balance declined
from Rs 6,152.22 crore as of 31 March 2021 to Rs 3,668.51 crore as of 31 March
2022. Investments declined from Rs
1,155.54 crore as of 31 March 2021 to Rs 469.92 crore as of 31 March 2022.
PBDT
rose 25.82% to Rs 13676.09 crore.
Provision for depreciation fell 13.15% to Rs 2096.78 crore. Fixed assets declined from Rs 55,561.11 crore
as of 31 March 2021 to Rs 43,980.19 crore as of 31 March 2022. Intangible assets increased from Rs 500.10
crore to Rs 4,045.99 crore.
Profit
before EO grew 36.94% to Rs 11,579.31 crore.
The company reported EO expense of Rs 406.24 crore compared to EO
expense of Rs 203.92 crore. PBT after EO was up 35% to Rs 11173.07 crore.
Provision
for tax was expense of Rs 2924.53 crore, compared to Rs 1810.81 crore. Effective tax rate was 26.17% compared to
21.94%.
Minority
interest increased 59.86% to Rs 1,012.68 crore.
Net profit attributable to owners of the company increased 24.59% to Rs
7,235.86 crore.
Equity
capital decreased from Rs 102.00 crore as of 31 March 2021 to Rs 101.07 crore
as of 31 March 2022 . Per share face
Value remained same at Rs 1.00.
Promoters’
stake was 60.45% as of 31 March 2022 ,compared to 60.47% as of 31 March 2021
. Promoters pledged stake was 39.98% as
of 31 March 2022 compared to 41.65% as of 31 March 2021 .
Cash
flow from operating activities increased to Rs 16,047.77 crore for year ended
March 2022 from Rs 11,960.93 crore for year ended March 2021. Cash flow used in acquiring fixed assets
during the year ended March 2022 stood at Rs 2,944.45 crore, compared to Rs
858.11 crore during the year ended March 2021.
JSPL Standalone
Performance
JSP
Q1FY23 production of 1.99 mt was 6% lower Q-o-Q and was marginally lower on a
Y-o-Y basis (-1% Y-o-Y). The company reported sales of 1.74 mt during the
quarter, which were 16% lower Q-o-Q (+8% Y-o-Y) as both domestic and export
volumes were impacted by challenging market conditions and
imposition of export duty in May 2022. Exports accounted for 26% of sales in
1QFY23 (vs. 29% in 4QFY22).
JSP’s
1QFY23 Gross revenues of INR 14,541 crore declined by 7% Q-o-Q (+27% Y-o-Y) as
lower volumes more than offset the benefit from higher realisations.
Notwithstanding higher input costs, 1QFY23 Adjusted EBITDA of Rs 2,865 crore
was 8% higher Q-o-Q (-35% Y-o-Y). Q1FY23 adjusted profit after tax (PAT) of Rs
2,072 crore (adjusted for exceptional) increased 44% Q-o-Q (-22% Y-o-Y) on
higher operating profit and lower finance costs.
Pellet
production of 1.92 mt declined 11 % Y-o-Y (-3% Q-o-Q) due to negligible
external sales (30KT vs. 400KT in Q1FY21).
Global Ventures
Mozambique: Chirodzi mine
produced 0.93 MT ROM (-11% Q-o-Q,-1% YoY) in 1QFY23. However, coking coal sales
of 197 KT were 25% higher Q-o-Q (+36% Y-o-Y). Mozambique operations reported
EBITDA of US$43mn for 1QFY23, driven by higher sales volumes and realisations.
South Africa: During 1QFY23,
Kiepersol mine in South Africa reported production of 146 KT ROM (+12% Q-o-Q,
-1% Y-o-Y) and sales of 74KT (-20% Q-o-Q, +2% Y-o-Y). The mine reported EBITDA
of US$11 million for the quarter.
Australia: During 1QFY23,
Russel Vale mine produced 138 KT ROM (+10 % Q-o-Q). Dispatches also increased
8% Q-o-Q to 79KT. The mine reported EBITDA of US$ 3 million for the quarter.
Wongawilli colliery remains under care & maintenance.
The
scrip is currently trading at Rs 345
|
Jindal Steel & Power : Consolidated Results
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Particulars
|
2206 (03)
|
2106 (03)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
13,045.41
|
10,609.50
|
23
|
51,085.56
|
34,540.54
|
48
|
|
OPM (%)
|
26.4
|
42.8
|
|
30.4
|
37.9
|
|
|
OP
|
3,438.74
|
4,538.95
|
-24
|
15,513.44
|
13,091.26
|
19
|
|
Other Inc.
|
23.76
|
33.67
|
-29
|
50.36
|
532.01
|
-91
|
|
PBIDT
|
3,462.50
|
4,572.62
|
-24
|
15,563.80
|
13,623.27
|
14
|
|
Interest
|
363.8
|
560.76
|
-35
|
1,887.71
|
2,753.34
|
-31
|
|
PBDT
|
3,098.70
|
4,011.86
|
-23
|
13,676.09
|
10,869.93
|
26
|
|
Depreciation
|
596.17
|
602.24
|
-1
|
2096.78
|
2414.13
|
-13
|
|
PBT
|
2,502.53
|
3,409.62
|
-27
|
11579.31
|
8455.8
|
37
|
|
Share of Profit/(Loss) from
Associates
|
-0.04
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
2502.49
|
3409.62
|
-27
|
11579.31
|
8455.8
|
37
|
|
EO Income
|
60.9
|
0
|
-
|
-406.24
|
-203.92
|
-99
|
|
PBT after EO
|
2563.39
|
3409.62
|
-25
|
11173.07
|
8251.88
|
35
|
|
Taxation
|
573.39
|
893.91
|
-36
|
2924.53
|
1810.81
|
62
|
|
PAT
|
1990
|
2515.71
|
-21
|
8248.54
|
6441.07
|
28
|
|
Minority Interest (MI)
|
777.89
|
-27.03
|
PL
|
1012.68
|
633.48
|
60
|
|
Net profit
|
1212.11
|
2542.74
|
-52
|
7235.86
|
5807.59
|
25
|
|
EPS (Rs)*
|
#
|
#
|
|
73.5
|
58.3
|
|
|
Notes
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* EPS is on current equity of Rs
102.01 crore, Face value of Rs 1, Excluding extraordinary items.
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# EPS is not annualised
|
|
bps : Basis points
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EO : Extraordinary items
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|
Figures in Rs crore
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Source: Capitaline Corporate
Database
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