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Jindal
Steel & Power consolidated net sales declined 0.58% to Rs 12452.44 crore in
Q3FY23 compared to Q3FY22. Operating
profit margin has declined from 26.43% to 19.09%, leading to 28.18% decline in
operating profit to Rs 2,377.49 crore.
Raw material cost as a % of total sales (net of stock adjustments)
decreased from 40.50% to 40.22%.
Purchase of finished goods cost rose from 5.54% to 5.84%. Employee cost increased from 1.90% to
2.41%. Other expenses rose from 26.87%
to 32.24%. Preoperation capitalised
expenses rose from 0.15% to 1.83%.
Other
income rose 62.63% to Rs 17.06 crore.
PBIDT fell 27.89% to Rs 2394.55 crore.
Provision for interest fell 26.64% to Rs 346.12 crore.
PBDT
fell 28.10% to Rs 2048.43 crore.
Provision for depreciation fell 0.94% to Rs 607.65 crore.
Profit
before tax down 35.55% to Rs 1,440.78 crore.
Share of profit/loss was 200% lower at Rs -0.06 crore. PBT before EO was
down 36% to Rs 1440.72 crore. The company reported EO expense of Rs 378.39
crore compared to nil in the corresponding previous year period. PBT after EO
was down 52% to Rs 1062.33 crore.
Provision
for tax was expense of Rs 544.06 crore, compared to Rs 613.82 crore. Effective tax rate was 51.21% compared to
27.46%.
Net
profit attributable to owners of the company decreased 62.20% to Rs 518.67
crore.
Promoters’
stake was 61.20% as of 31 December 2022 ,compared to 60.44% as of 31 December
2021 . Promoters pledged stake was
39.16% as of 31 December 2022 ,compared to 40.10% as of 31 December 2021 .
For year-to-date
(YTD) results analysis
Net
sales (including other operating income) of Jindal Steel & Power has
increased 6.19% to Rs 39019.25 crore.
Operating profit margin has declined from 33.86% to 19.86%, leading to
37.74% decline in operating profit to Rs 7,747.62 crore. Raw material cost as a % of total sales (net
of stock adjustments) increased from 35.15% to 41.37%. Purchase of finished goods cost rose from
4.19% to 4.73%. Employee cost increased from 1.82% to
2.15%. Other expenses rose from 26.11%
to 32.00%. Preoperation capitalised
expenses rose from 0.13% to 1.25%.
Other
income fell 13.87% to Rs 41.29 crore.
PBIDT fell 37.64% to Rs 7788.91 crore.
Provision for interest fell 29.02% to Rs 1074.73 crore.
PBDT
fell 38.83% to Rs 6714.18 crore.
Provision for depreciation fell 0.39% to Rs 1818.08 crore.
Profit
before tax down 46.50% to Rs 4,896.10 crore.
Share of profit/loss was 550% lower at Rs -0.13 crore. PBT before EO was
down 47% to Rs 4895.97 crore. The company reported EO expense of Rs 1215.98
crore compared to nil in the corresponding previous year period. PBT after EO
was down 60% to Rs 3679.99 crore.
Provision
for tax was expense of Rs 952.46 crore, compared to Rs 2430.42 crore. Effective tax rate was 25.88% compared to
26.56%.
Minority
interest increased 151.75% to Rs 797.05 crore.
Net profit attributable to owners of the company decreased 69.86% to Rs
1,930.48 crore.
Promoters’
stake was 61.20% as of 31 December 2022 ,compared to 60.44% as of 31 December
2021 . Promoters pledged stake was
39.16% as of 31 December 2022 ,compared to 40.10% as of 31 December 2021.
JSPL Standalone
Performance
The
company reported production of 2.06 mt during the quarter, which was 13% higher
QoQ & sales at 1.90 mt (down 6% QoQ). Exports accounted for 5% of sales
volume in 3QFY23 (vs. 11% in 2QFY23) as a consequence of weak global demand and
continuation of export duty till 19th Nov’22. Pellet production stood at 1.96
Mt (up 9% QoQ). External pellet sales declined to 53KT (vs 109KT in 2QFY23) on
the back of increased captive usage.
Gross
revenue for the quarter came at Rs 13,831 crore (down 9% QoQ) on the back of
lower volumes. Lower cost of raw materials especially coal and flattish steel
price during the quarter resulted in 52% QoQ growth in adjusted EBITDA at Rs
2,163 crore. FX gain during the quarter was Rs 82 crore. EBITDA without
adjusting for FX gain stood at Rs 2,244 crore. JSP reported PAT (before
exceptional items) for 3QFY23 at Rs 836 crore (down 11% QoQ). The company has
created a provision of Rs 7,253 crore towards diminution in value of its
investments in its wholly owned subsidiary, JSMPL. Post these exceptional
items, the reported standalone results were net loss at Rs 4,512 crore.
Global Ventures
Mozambique: Chirodzi mine
produced 1.26 Mt ROM (up 9% QoQ) during 3QFY23. Coking coal sales stood at 207kt
(up 6% QoQ) in 3QFY23. Mozambique operations reported EBITDA of US$5mn for
3QFY23 (down 64% QoQ), driven by a reduction in coking coal realization and
lower sales volume of thermal coal.
South Africa: Kiepersol mine ROM
production stood at 118 KT in 3QFY23, while prime product sales reported at 101
KT (down 13% QoQ). The mine reported EBITDA of US$4 mn (down 67% QoQ) for the
quarter.
Australia: During 3QFY23,
Russel Vale mine maintained its production run rate and reported 149 KT ROM
(down 1% QoQ). Dispatches however increased 102% QoQ to 159 KT . The mine
reported an operating EBITDA loss of US$ 6 mn for the quarter. Wongawilli
colliery continues to remain under care and maintenance
The
scrip is currently trading at Rs 601
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Jindal Steel & Power : Consolidated Results
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Particulars
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2212 (03)
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2112 (03)
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Var.(%)
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2212 (09)
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2112 (09)
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Var.(%)
|
2203 (12)
|
2103 (12)
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Var.(%)
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Net Sales
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12,452.44
|
12,524.86
|
-1
|
39,019.25
|
36,746.07
|
6
|
51,085.56
|
34,540.54
|
48
|
|
OPM (%)
|
19.1
|
26.4
|
|
19.9
|
33.9
|
|
30.4
|
37.9
|
|
|
OP
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2,377.49
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3,310.18
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-28
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7,747.62
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12,443.24
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-38
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15,513.44
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13,091.26
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19
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Other Inc.
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17.06
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10.49
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63
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41.29
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47.94
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-14
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50.36
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532.01
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-91
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PBIDT
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2,394.55
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3,320.67
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-28
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7,788.91
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12,491.18
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-38
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15,563.80
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13,623.27
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14
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Interest
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346.12
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471.78
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-27
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1,074.73
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1,514.23
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-29
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1,887.71
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2,753.34
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-31
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PBDT
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2,048.43
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2,848.89
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-28
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6,714.18
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10,976.95
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-39
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13,676.09
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10,869.93
|
26
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Depreciation
|
607.65
|
613.39
|
-1
|
1818.08
|
1825.24
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0
|
2096.78
|
2414.13
|
-13
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PBT
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1,440.78
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2,235.50
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-36
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4896.1
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9151.71
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-47
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11579.31
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8455.8
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37
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Share of Profit/(Loss) from
Associates
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-0.06
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-0.02
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-200
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-0.13
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-0.02
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-550
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-0.23
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0
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-
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PBT before EO
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1440.72
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2235.48
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-36
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4895.97
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9151.69
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-47
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11579.08
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8455.8
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37
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EO Income
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-378.39
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0
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-
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-1215.98
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0
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-
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-406.24
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-203.92
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-99
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PBT after EO
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1062.33
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2235.48
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-52
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3679.99
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9151.69
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-60
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11172.84
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8251.88
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35
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Taxation
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544.06
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613.82
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-11
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952.46
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2430.42
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-61
|
2924.53
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1810.81
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62
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PAT
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518.27
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1621.66
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-68
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2727.53
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6721.27
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-59
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8248.31
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6441.07
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28
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Minority Interest (MI)
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-0.4
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249.41
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LP
|
797.05
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316.61
|
152
|
1012.68
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633.48
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60
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Net profit
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518.67
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1372.25
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-62
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1930.48
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6404.66
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-70
|
7235.63
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5807.59
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25
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EPS (Rs)*
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#
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#
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#
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#
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73.5
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58.3
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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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