Jindal Steel and Power (JSPL) reported a net profit of Rs 109.9 crore on a consolidated basis in the first three months of FY19, against a loss of Rs 421.4 crore in the corresponding quarter a year ago. The company has reported a consolidated quarterly profit after 14 loss-making quarters. JSPL’s revenue in the quarter was Rs 9,665.4 crore, nearly 58% higher year-on-year (y-o-y), as steel sales spiralled 76% to Rs 8,308.7 crore in the same period.
JSPL’s earnings before interest, tax, depreciation and amortisation (Ebitda) in the quarter was Rs 2,277 crore, registering an annual growth of 68%. Ebitda margins remain unchanged at 24%. In line with its roadmap, the company is targeting to lower its debt by Rs Rs 6,000 crore by the end of this fiscal from the current levels of around Rs 42,000 crore.
Financial performance continued to be impacted by higher finance cost due to borrowing for payment of additional coal levy of about Rs 3,300 crore and higher fuel expenses after the Court’s cancellation of coal blocks, the company noted. Buoyed by rising domestic steel consumption, the company produced 1.65 mt, up 31% y-o-y, in the quarter and sold 1.61 mt, up 40%, in the same period. “With the 6 MTPA integrated steel plant at Angul tracing the planned ramp-up blueprint, we are confident of setting new production and sales benchmarks with every passing quarter,” JSPL CEO NA Ansari said.
The company’s performance in the power generation business continued to remain dismal with revenue from this segment slipping by 3.4% y-o-y in the quarter to Rs 1,759 crore on a consolidated basis. Jindal Power’s power plants produced 2,751 million units of electricity in the quarter, down 14% annually. Out of 3,400 MW of its total generation capacity, around 30% is tied up with power purchase agreements