Jindal Steel and Power (JSPL) narrowed its consolidated net loss to Rs 421 crore for the three months ended June 30, 2017 from a net loss of Rs 1,240 crore in the period of April-June 2016.T
Jindal Steel and Power (JSPL) narrowed its consolidated net loss to Rs 421 crore for the three months ended June 30, 2017 from a net loss of Rs 1,240 crore in the period of April-June 2016.The company’s consolidated revenues stood at Rs 6127 crore, a rise of 20% y-o-y, while the EBITDA (earnings before interest, tax, depreciation and amortization) was up by 33% to Rs 1,353 crore. The EBITDA margins also came in higher by 200 basis points at 22% during the quarter. JSPL produced 1.26 million tonnes of steel on the consolidated level versus 1.19 million tonnes in Q1FY17, which was 6% higher and sold 1.15 million tonnes of steel against 1.11 million tonnes in Q1FY17, an increase of 4%. Jindal Power (JPL) posted an all round improvement in its performance during the quarter. JPL generated 3,186 units as compared to 2,171 units in the same period last year, registering a rise of 47%.
During 1QFY18, the station PLF increased to 43% compared to 36% in Q1FY17. Meanwhile, the revenues from power business increased by 62% y-o-y. EBITDA for the quarter registered a more than two fold increase on a y-o-y basis to `468 crore. JPL generated cash profits of Rs 310 crore in 1QFY18.
“The company continued with its initiatives on further reduction of operating costs in curtailing the fuel and O&M costs by nearly 20%. Firm steps were taken to prevent coal grade slippages and further reduction of auxiliary power consumption,” company said in a statement.
Meanwhile, JSPL will commission 4 million tonne blast furnace into services during Q2FY18, which will ramp up its production and is expected to reach its full potential by the end of FY18. Consequently, the volume of steel produced and delivered by the company is expected to double from the levels witnessed in April-June 2017.
“FY18 is expected to emerge as a turning point for JSPL steel business. The prices in the domestic market complemented by upswing in the export volumes are expected to increase moderately,” company said in a statement.