Jindal Steel And Power Returns To Profit In Q1

- Aug 10, 2018-

JSPL Standalone Steel production rose 36% in the reported quarter to 1.22 million tonnes (0.90 million tonnes in 1QFY18) while Standalone Steel sales during 1QFY19 increased to 1.19 million tonnes (up 46% YoY). The Company’s Angul plant continues to ramp up steadily and is being stabilized at different levels of production. Production at Angul this quarter was approx. 2.5x of volumes produced in 1QFY18. The Company believes this gradual and steady growth shall help the Angul facility reach its optimum utilization with better efficiencies.

The revenues for JSPL Standalone came in at Rs. 6,734 Cr (up 100% YoY, adjusted for Excise Duty/GST changes). The rise in sales realization has led to an increase in EBITDA in 1QFY19 by 119% YoY to Rs. 1,645 Cr despite of rising raw materials' costs. The Company reported an expansion in the EBITDA margins for 1QFY19, which came at 24% as compared to 1QFY18 (22%). JSPL Standalone reported Profit After Tax of Rs. 332 Cr as compared to a loss of Rs. 178 Cr in 1QFY18.

During 1QFY19, production of pellets increased by 4% YoY to 1.76 million tonnes and the company achieved external sales of pellets of 0.83 MT during 1QFY19.

JSPL produced 1.65 million tonnes on the Consolidated level (up 31% from 1.27 million tonnes in 1QFY18) and sold 1.61 million tonnes (up 40% from 1.15 million tonnes in 1QFY18).

JSPL reported Consolidated Revenues of Rs. 9,665 Cr (up 71% YoY, adjusted for Excise Duty/GST changes) while Consolidated EBITDA increased to Rs. 2,277 Cr from Rs. 1,353 Cr (in 1QFY18), up 68% YoY. JSPL Consolidated Profits After Tax jumped from a loss of Rs. 421 Cr in 1QFY18 to a profit of Rs. 110 Cr in 1QFY19.

Net Debt to EBITDA (rolling basis) at the end of 1QFY19 stood at 4.68x as compared to 8.2x in 1QFY18. The Consolidated net debt came down this quarter, excluding the impact of foreign currency.

Oman: During the quarter ended 30,h June’2018, Jindal Shadeed recorded production of 0.43 million tonnes of crude steel (as against 0.36 million tonnes in 1QFY18). It reported EBITDA of US$ 68 mn for 1QFY19 (vs. US$32 mn in 1QFY18). The rebar mill at Oman achieved production of 0.31 million tonnes this quarter.

Mozambique: Mines at Mozambique produced 271 KT ROM in 1QFY19 and continues to ramp up.

Australia: During 1QFY19, Wongawilli mines continued to ramp up and produced approx. 100KT with record production of 48KT in June'18. Russell Vale mines continues to be in care & maintenance.

JSPL Standalone 1QFY19 Performance (YoY):
Turnover: Rs. 6,734 Cr; increased by 100%
EBITDA: Rs. 1,645 Cr; increased by 119%
EBITDA Margin: 24%
Crude Steel Production: 1.22 million tonnes
Steel Sales: 1.19 million tonnes

JSPL Consolidated 1QFY19 Performance (YoY):
Turnover: Rs. 9,665 Cr; increased by 71%
EBITDA : Rs. 2,277 Cr; increased by 68%
EBITDA Margin: 24%
EBITDA - Oman : US$ 68 mn
Crude Steel Production: 1.65 million tonnes
Steel Sales: 1.61 million tonnes

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