JSPL Q1 results: Profit jumps over 10 times to Rs 2,516 crore

Jindal Steel and Power on August 10 posted over 10 times rise in consolidated net profit at Rs 2516 crore for the quarter ended June 30. It had posted a profit of Rs 236 crore in the same quarter last year. Gross revenue of the company increased by 67% YoY to Rs 11,698 crore.

In a regulatory filing, JSPL said that aided by the strong operating performance amidst challenging market conditions, JSPL reported a consolidated profit after tax (continuing operations) of Rs 2,516 crore. The company’s focus on deleveraging has resulted in consolidated net debt reducing to Rs 15,227 crore (Ex-JPL). The balance sheet continues to strengthen further with net debt to EBITDA improving to 0.96 (from 1.53x in the previous quarter).

Outlook

Acknowledging a superior balance sheet and a bright outlook for the steel sector CARE has upgraded JSPL’s long term borrowing rating to CARE A(+) with a stable outlook from CARE A(-) with a Stable outlook.

“Despite adverse market conditions due to the second wave of Covid-19 and ensuing lockdowns, JSPL has been able to post a resilient set of numbers in 1QFY22. The company reported a record first-quarter steel production of 2.01 million tonnes,” JSPL said.

Shares of the company closed 4.14% up at Rs 400.75 on August 10, while the benchmark BSE Sensex settled 0.28% higher at 54,555.

Net revenue of JSPL grew 62.78% YoY to Rs 10610 crore. On the other hand, EBITDA also witnessed a growth of 150% at Rs 4,539 crore.

“Volume growth coupled with upward momentum in steel prices in Q1FY22 resulted in standalone net revenues rising by 65% YoY. However, during the quarter long steel prices were relatively subdued compared to flat steel prices, which were also boosted by buoyant export markets. The quarter also witnessed a sharp rise in input costs, impact of which was compounded by exhaustion of low cost iron ore inventory,” the company said in a statement.