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Jindal
Steel & Power consolidated net sales declined 0.66% to Rs 13521.4 crore in
Q2FY23 compared to Q2FY22. Operating
profit margin has declined from 33.75% to 14.28%, leading to 57.96% decline in
operating profit to Rs 1,931.37 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 35.18% to 38.06%.
Purchase of finished goods cost rose from 2.81% to 5.66%. Employee cost increased from 1.66% to
2.35%. Other expenses rose from 25.86%
to 37.92%. Preoperation capitalised
expenses rose from 0.09% to 0.81%.
Other
income fell 87.30% to Rs 0.48 crore.
PBIDT fell 57.98% to Rs 1931.85 crore.
Provision for interest fell 24.26% to Rs 364.81 crore.
PBDT
fell 61.93% to Rs 1567.04 crore.
Provision for depreciation rose 0.76% to Rs 614.26 crore.
Profit
before EO was down 72.83% to Rs 952.78 crore.
The company reported EO expense of Rs 898.49 crore related to provision
for accumulated interest & forex gains on loan between JSP and its wholly
owned subsidiary,JSPML compared to nil EO item during Q1FY22. PBT after EO was
down 98% to Rs 54.27 crore.
Provision
for tax was credit of Rs 165 crore, compared to debit of Rs 922.69 crore.
Minority
interest decreased 79.24% to Rs 19.56 crore.
Net profit attributable to owners of the company decreased 91.98% to Rs
199.71 crore.
Equity
capital decreased from Rs 102.01 crore as of 30 September 2021 to Rs 100.50
crore as of 30 September 2022 . Per
share face Value remained same at Rs 1.00.
Promoters’
stake was 61.20% as of 30 September 2022 ,compared to 60.47% as of 30 September
2021. Promoters pledged stake was 40.84%
as of 30 September 2022 ,compared to 39.50% as of 30 September 2021 .
For year-to-date
(YTD) results analysis
Net
sales of Jindal Steel & Power have increased 9.68% to Rs 26566.81 crore.
Operating profit margin has declined from 37.71% to 20.21%, leading to 41.20%
decline in operating profit to Rs 5,370.11 crore. Raw material cost as a % of total sales (net
of stock adjustments) increased from 32.33% to 41.89%. Purchase of finished goods cost rose from
3.47% to 4.22%. Employee cost increased
from 1.78% to 2.03%. Other expenses
rose from 25.71% to 31.89%.
Preoperation capitalised expenses rose from 0.12% to 0.98%.
Other
income fell 35.27% to Rs 24.24 crore.
PBIDT fell 41.18% to Rs 5394.35 crore.
Provision for interest fell 30.11% to Rs 728.61 crore.
PBDT
fell 42.60% to Rs 4665.74 crore.
Provision for depreciation fell 0.12% to Rs 1210.43 crore.
Profit
before tax down 50.04% to Rs 3,455.31 crore.
The company reported EO expense of Rs 837.59 crore (Rs 898.49 crore
provision for accumulated interest & forex gains on loan between JSP and
its wholly owned subsidiary,JSPML and Rs 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 H1FY22. PBT after EO was down 62%
to Rs 2617.66 crore.
Provision
for tax was expense of Rs 408.39 crore, compared to Rs 1816.61 crore. Effective tax rate was 15.60% compared to
26.27%.
Minority
interest increased 1,086.86% to Rs 797.45 crore. Net profit attributable to owners of the
company decreased 71.95% to Rs 1,411.82 crore.
Equity
capital decreased from Rs 102.01 crore as of 30 September 2021 to Rs 100.50
crore as of 30 September 2022 . Per
share face Value remained same at Rs 1.00.
Promoters’
stake was 61.20% as of 30 September 2022 ,compared to 60.47% as of 30 September
2021 . Promoters pledged stake was
40.84% as of 30 September 2022 ,compared to 39.50% as of 30 September
2021.
JSPL Standalone
Performance
On
the back strong domestic demand in 2QFY23, JSP has reported sales of 2.01 mt
(up 16% higher QoQ). The company reported production of 1.82 mt during the quarter,
which was 9% lower QoQ, largely due to a maintenance shutdown at the Raigarh
Plant. The export volumes accounted for 11% of sales in 2QFY23 (vs. 26% in
1QFY23) as a consequence of export duty and weakened global demand.
JSP’s
2QFY23 gross revenues came at Rs 15,118 crore (up 4% QoQ) on the back of higher
volumes but lower realizations. Lower coking coal and iron ore prices offset by
high thermal coal prices, inventory valuation losses, resulted in adjusted
EBITDA of Rs 1,426 crore (down 50% QoQ). The adjustments were on account of FX
gain of Rs 412 crore. EBITDA without adjusting for FX gain stood at Rs 1,838
crore. JSP reported Profit after tax (before exceptional) for 2QFY23 at Rs 935
crore (down 55% QoQ). Provisions of Rs 1,664 crore for accumulated interest
& forex gains on loan between JSP and its wholly owned subsidiary, JSPML
have been made during the quarter. Post these exceptional items, reported net
loss after tax was Rs 473 crore.
Pellet
production of 1.79 mt remained flat YoY (down 7% QoQ). External sales for
pellets rose to 109 KT (vs 27KT in 1QFY23) on back of domestic demand uptick.Global Ventures
Mozambique: Chirodzi mine
produced 1.16 MT ROM (+25% Q-o-Q) in 2QFY23. However, coking coal sales were a
bit lower since last quarter at 195 KT. Mozambique operations reported EBITDA
of US$15mn for 2QFY23 (down 66% Q-o-Q), driven by fall in coking coal prices
South Africa: Kiepersol mine took
an operational shutdown during 2QFY23 and hence reported lower production &
sales volumes for the reported quarter. Production stood at 81 KT ROM (-45%
Q-o-Q) while sales came at 31KT (down 58% Q-o-Q). The mine reported EBITDA of
US$13 mn for the quarter.
Australia: During 2QFY23,
Russel Vale mine has been slow on ramp up and reported 150 KT ROM (up 9% Q-o-Q)
production. Dispatches remained flat at 79KT. The mine reported operational
EBITDA of US$ 8mn for the quarter. Wongawilli colliery continues to remain
under care & maintenance.
The
scrip is currently trading at Rs 499
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Jindal Steel & Power : Consolidated Results
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Particulars
|
2209 (03)
|
2109 (03)
|
Var.(%)
|
2209 (06)
|
2109 (06)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
13,521.40
|
13,611.71
|
-1
|
26,566.81
|
24,221.21
|
10
|
51,085.56
|
34,540.54
|
48
|
|
OPM (%)
|
14.3
|
33.8
|
|
20.2
|
37.7
|
|
30.4
|
37.9
|
|
|
OP
|
1,931.37
|
4,594.12
|
-58
|
5,370.11
|
9,133.08
|
-41
|
15,513.44
|
13,091.26
|
19
|
|
Other Inc.
|
0.48
|
3.78
|
-87
|
24.24
|
37.45
|
-35
|
50.36
|
532.01
|
-91
|
|
PBIDT
|
1,931.85
|
4,597.90
|
-58
|
5,394.35
|
9,170.53
|
-41
|
15,563.80
|
13,623.27
|
14
|
|
Interest
|
364.81
|
481.69
|
-24
|
728.61
|
1,042.45
|
-30
|
1,887.71
|
2,753.34
|
-31
|
|
PBDT
|
1,567.04
|
4,116.21
|
-62
|
4,665.74
|
8,128.08
|
-43
|
13,676.09
|
10,869.93
|
26
|
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Depreciation
|
614.26
|
609.61
|
1
|
1210.43
|
1211.85
|
0
|
2096.78
|
2414.13
|
-13
|
|
PBT
|
952.78
|
3,506.60
|
-73
|
3455.31
|
6916.23
|
-50
|
11579.31
|
8455.8
|
37
|
|
Share of Profit/(Loss) from
Associates
|
-0.02
|
0
|
-
|
-0.06
|
0
|
-
|
0
|
0
|
-
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PBT before EO
|
952.76
|
3506.6
|
-73
|
3455.25
|
6916.23
|
-50
|
11579.31
|
8455.8
|
37
|
|
EO Income
|
-898.49
|
0
|
-
|
-837.59
|
0
|
-
|
-406.24
|
-203.92
|
-99
|
|
PBT after EO
|
54.27
|
3506.6
|
-98
|
2617.66
|
6916.23
|
-62
|
11173.07
|
8251.88
|
35
|
|
Taxation
|
-165
|
922.69
|
LP
|
408.39
|
1816.61
|
-78
|
2924.53
|
1810.81
|
62
|
|
PAT
|
219.27
|
2583.91
|
-92
|
2209.27
|
5099.62
|
-57
|
8248.54
|
6441.07
|
28
|
|
Minority Interest (MI)
|
19.56
|
94.22
|
-79
|
797.45
|
67.19
|
999
|
1012.68
|
633.48
|
60
|
|
Net profit
|
199.71
|
2489.69
|
-92
|
1411.82
|
5032.43
|
-72
|
7235.86
|
5807.59
|
25
|
|
EPS (Rs)*
|
#
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#
|
|
#
|
#
|
|
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
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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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