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

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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.