Jindal Steel & Power Ltd Posts Consolidated Net Profit of Rs5.5cr in Q4FY18

By Realty Quarter Bureau

Jindal Steel and Power beat consensus estimates for both revenue and net profit in Q4FY18. Revenue grew by 27.3% yoy to Rs8, 599cr (expectation Rs8, 081cr). EBITDA stood at Rs2, 136cr, up 37.7% yoy against estimates of Rs2, 014cr. EBIDTA margin rose by 187bps yoy to 24.8%. Adjusted Net Profit stood at Rs5.5cr (expectation of Rs3cr).

Standalone steel sales for Q4FY18 stood at 1.18mn tonnes, a 29% yoy increase. This was due to the successful ramp up of production at Angul. Consolidated steel sales stood at 1.66mn tonnes, up 27% yoy.

Low coal availability impacted the generation of Jindal Power. As a result, Jindal Power generated 2,310mn units and the PLF stood at 31% for the quarter. EBITDA margin for the power business fell from 44% in Q4FY17 to 28% in Q4FY18 on the back of sharp increase in raw material costs. The cash profit for the power business stood at Rs98cr for the quarter.

Jindal Shadeed recorded its highest ever quarterly production of 0.46mn tonnes of crude steel as well as its highest ever quarterly EBITDA at $71mn.

The company also reported that production is ramping up steadily at the Mozambique and Wongawilli mines with a production of 0.3mn tonnes and 0.1mn tonnes respectively in Q4FY18. The Russel Vale mines continue to remain under care and maintenance.