Jindal Steel and Power (JSPL) narrowed its consolidated net loss to Rs 497.6 crore for the three months ended September 30 from a net loss of Rs 746 crore in the corresponding period last year. The company’s consolidated revenues stood at Rs 6,123 crore, a rise of about 22% Y-o-Y, while the EBITDA (earnings before interest, tax, depreciation and amortisation) grew 62% to Rs 1,373.4 crore. The EBITDA margin also came in higher by 500 basis points at 22% during the quarter.
The loss per share during the reviewed quarter was Rs 2.79, about 42% lower than analysts’ estimates. “The company remains focused on bringing down debt and is on track to further improve its net debt to EBITDA,” the company said in a statement. JSPL’s debt has fallen by about `900 crore quarter-on-quarter to Rs 45,000 crore.
Naushad A Ansari, chief executive officer, steel segment, told FE that the company is in advanced stages of negotiations to restructrure a component of its foreign currency denominated debt in Mauritius worth about Rs 5,000 crore.
JSPL’s steel production went up 14% in the quarter to 1.32 million tonne (MT) at the consolidated level. There was a more than 25% increase in the company’s revenue from the iron and steel business segment to Rs 4,996.77 crore. “The company expects even higher steel production after the new blast furnace in Angul gets fully operationalised in December,” Ansari said. The company expects better steel realisations on back of sustained global prices and rise in domestic demand with impetus from the government initiatives, especially in railways and infrastructure.
Impeded by coal shortage, Jindal Power generated 2,427 units in the quarter, down 24% year-on-year. This led to plant load factors (PLFs) at its plants falling 5 percentage points to 32%. Nevertheless, the company’s revenue from the power segment, which included captive power operations, inched up 4% to Rs 1,430 crore, buoyed by higher electricity prices in spot markets.