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Jindal
Steel & Power consolidated net sales declined 4.52% to Rs 13691.93 crore in
Q4FY23 compared to Q4FY22. Operating
profit margin has declined from 21.41% to 15.98%, leading to 28.76% decline in
operating profit to Rs 2,187.28 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 40.42% to 45.20%.
Purchase of finished goods cost fell from 5.25% to 4.40%. Employee cost increased from 1.28% to
2.14%. Other expenses rose from 30.87%
to 32.23%. Preoperation capitalised
expenses fell from 0.22% to 0.08%.
Other
income rose 551.24% to Rs 15.76 crore.
PBIDT fell 28.30% to Rs 2203.04 crore.
Provision for interest fell 0.62% to Rs 371.17 crore.
PBDT
fell 32.13% to Rs 1831.87 crore.
Provision for depreciation rose 221.46% to Rs 872.88 crore.
Profit
before tax down 60.50% to Rs 958.99 crore.
Share of profit/loss was 85.71% higher at Rs -0.03 crore. Extraordinary items were increased to Rs -153.47
crore. Provision for tax was expense of
Rs 339.83 crore, compared to Rs 494.11 crore.
Effective tax rate was 42.19% compared to 24.45%.
Minority
interest decreased 99.55% to Rs 3.10 crore.
Net profit attributable to owners of the company decreased 44.33% to Rs
462.56 crore.
Equity
capital decreased from Rs 101.07 crore as of 31 March 2022 to Rs 100.50 crore
as of 31 March 2023 . Per share face
Value remained same at Rs 1.00.
Promoters’
stake was 61.20% as of 31 March 2023 ,compared to 60.45% as of 31 March 2022
. Promoters pledged stake was 36.43% as
of 31 March 2023 ,compared to 39.98% as of 31 March 2022.
JSPL Standalone
Performance
The
company reported production of 2.02 mt during the quarter, marginally down by
2% QoQ. However sales at 2.03 mt was up 7% QoQ. Exports accounted for 11% of
the total sales volume during the quarter compare to. 5% in 3QFY23 reflecting a
revival in exports post withdrawal of export duty. Pellet production at 1.90 mt
was down 3% QoQ. External pellet sales were 42 kt compared to 53kt in
3QFY23.
Gross
revenue for the quarter came at Rs 15,480 crore was flattish QoQ. Increase in
NSR partly offset the higher raw material costs especially iron ore resulting
in improvement in adjusted EBITDA by 1% QoQ at Rs 2,178 crore. Net profit for
the quarter stood at Rs 789 crore compared to a net loss of Rs 4,512 crore
during Q3FY23.
For
FY23, Production stood at 7.89 mt compared to 8.01 mt in FY22. Total sales
(incl. pig iron) stood at 7.68 mt compared to 7.64mt in FY22, despite
imposition of export duty on steel exports which led to a decline of 60% in
exports volume to 0.99 mt compared to 2.51 mt in FY22. Taking advantage of
strong demand, JSP increased domestic sales by 30% YoY. The Pellet production
was flattish YoY to 7.57mt in FY23. Pellet sales stood at 0.23mt compared to.
0.75mt in FY22.
Improved
steel realisation and higher sales volume resulted in 7% increase in gross
revenue to Rs 58,970 crore. Standalone adjusted EBITDA stood at Rs 8,562 crore
and while net profit stood at Rs 2,427 crore amidst volatile steel & raw
material pricing environment.
Global Ventures
Mozambique: Chirodzi mines
produced 0.98 mt ROM (down 22% QoQ) during the quarter. Coking coal sales stood
at 179 kt. Mozambique operations reported operating EBITDA of US$9m for 4QFY23.
For FY23 ROM production stood at 4.3mt in FY23 compared to 4.1 mt in FY22.
Coking coal sales also improved in line with production to 759 kt as compared
to 700kt in FY22. For FY23 Mozambique operations reported operating EBITDA of
US$ 123m a jump of 92% and PAT of US$37m a growth of 68% YoY.
South Africa: During the quarter,
Kiepersol mines produced 115 kt ROM. The mine reported prime product sales of
90 kt in 4QFY23 and 381 kt in FY23. EBITDA stood at US$ 3m for the quarter and
US$31 m for the year.
Australia: During the quarter,
Russel Vale mine’s ROM production grew 6% QoQ at 157 kt and 25% for the year at
594 kt. Dispatches for the quarter were 123 kt and 440kt for the year. The mine
reported an operating EBITDA of US$ 1 m compared to a loss of US$ 7m QoQ and
gain of US$ 4m for FY23. Wongawilli colliery continues to remain under care and
maintenance.
Management Comments:
"JSP`s
balance sheet is the strongest amongst the large integrated steel players in
India and our leverage ratios are also amongst the lowest compared to the large
integrated steel players in India despite volatile macro environment. Our focus
on cash generation is one of the key factors driving our growth. We are on
track with our stated growth plans and are working towards making our Angul
Integrated steel complex as more cost competitive with the opening of coal
mines at Utkal-c in near future", said
Mr Bimlendra Jha, Managing Director, Jindal Steel & Power, in a statement
Full year results analysis
Net
sales of Jindal Steel & Power have increased 3.18% to Rs 52711.18
crore. Operating profit margin has
declined from 30.37% to 18.85%, leading to 35.96% decline in operating profit
to Rs 9,934.89 crore. Raw material cost
as a % of total sales (net of stock adjustments) increased from 36.56% to
42.36%. Purchase of finished goods cost
rose from 4.47% to 4.64%. Employee cost
increased from 1.68% to 2.15%. Other
expenses rose from 27.38% to 32.06%.
Preoperation capitalised expenses rose from 0.15% to 0.95%.
Other
income rose 13.28% to Rs 57.05 crore.
PBIDT fell 35.80% to Rs 9991.94 crore.
Provision for interest fell 23.41% to Rs 1445.89 crore. Loan funds declined from Rs 13,501.64 crore
as of 31 March 2022 to Rs 13,046.31 crore as of 31 March 2023. Inventories declined from Rs 7,281.36 crore
as of 31 March 2022 to Rs 5,886.78 crore as of 31 March 2023. Sundry debtors were lower at Rs 974.47 crore
as of 31 March 2023 compared to Rs 1,264.07 crore as of 31 March 2022. Cash and bank balance rose to Rs 4,716.83
crore as of 31 March 2023 from Rs 3,668.51 crore as of 31 March 2022. Investments rose to Rs 907.40 crore as of 31
March 2023 from Rs 469.92 crore as of 31 March 2022 .
PBDT
fell 37.51% to Rs 8546.05 crore.
Provision for depreciation rose 28.34% to Rs 2690.95 crore. Fixed assets increased to Rs 51,356.33 crore
as of 31 March 2023 from Rs 47,578.16 crore as of 31 March 2022. Intangible assets declined from Rs 448.02
crore to Rs 55.41 crore.
Profit
before tax down 49.43% to Rs 5,855.10 crore.
Share of profit/loss was 34.78% higher at Rs -0.15 crore. Extraordinary items were decreased to Rs
-1,369.46 crore. Provision for tax was
expense of Rs 1292.28 crore, compared to Rs 2924.53 crore. Effective tax rate was 28.81% compared to
26.18%.
Minority
interest decreased 20.99% to Rs 800.15 crore.
Net profit attributable to owners of the company decreased 66.93% to Rs
2,393.06 crore.
Equity
capital decreased from Rs 101.07 crore as of 31 March 2022 to Rs 100.50 crore
as of 31 March 2023 . Per share face
Value remained same at Rs 1.00.
Promoters’
stake was 61.20% as of 31 March 2023 compared to 60.45% as of 31 March 2022
. Promoters pledged stake was 36.43% as
of 31 March 2023 compared to 39.98% as of 31 March 2022 .
Cash
flow from operating activities decreased to Rs 7,275.51 crore for year ended
March 2023 from Rs 16,047.77 crore for year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 6,448.48 crore, compared to Rs
2,944.45 crore during the year ended March 2022.
The
scrip is currently trading at Rs 560
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Jindal Steel & Power :
Consolidated Results
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Particulars
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2303 (03)
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2203 (03)
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Var.(%)
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2303 (12)
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2203 (12)
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Var.(%)
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Net Sales
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13,691.93
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14,339.49
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-5
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52,711.18
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51,085.56
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3
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OPM (%)
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16.0
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21.4
|
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18.85
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30.4
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OP
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2,187.28
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3,070.20
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-29
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9,934.89
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15,513.44
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-36
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Other Inc.
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15.76
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2.42
|
551
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57.05
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50.36
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13
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PBIDT
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2,203.04
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3,072.62
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-28
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9,991.94
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15,563.80
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-36
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Interest
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371.17
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373.48
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-1
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1,445.89
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1,887.71
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-23
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PBDT
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1,831.87
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2,699.14
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-32
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8,546.05
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13,676.09
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-38
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Depreciation
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872.88
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271.54
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221
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2690.95
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2096.78
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28
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PBT
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958.99
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2,427.60
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-61
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5855.1
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11579.31
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-49
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Share of Profit/(Loss) from
Associates
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-0.03
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-0.21
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86
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-0.15
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-0.23
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35
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PBT before EO
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958.96
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2427.39
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-60
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5854.95
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11579.08
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-49
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EO Income
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-153.47
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-406.24
|
62
|
-1369.46
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-406.24
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-237
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PBT after EO
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805.49
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2021.15
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-60
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4485.49
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11172.84
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-60
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Taxation
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339.83
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494.11
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-31
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1292.28
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2924.53
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-56
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PAT
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465.66
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1527.04
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-70
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3193.21
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8248.31
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-61
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Minority Interest (MI)
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3.1
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696.07
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-100
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800.15
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1012.68
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-21
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Net profit
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462.56
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830.97
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-44
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2393.06
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7235.63
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-67
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EPS (Rs)*
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#
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#
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30.6
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73.5
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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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