Jindal Power generated 2,171 MU power in Q1 compared to 1,875 MU in the same quarter last fiscal. It generated Rs 668-crore revenue during the quarter
Coupled with subdued steel prices and a Rs 626-crore impairment charge on its Australian assets, Naveen Jindal-led Jindal Steel and Power on Thursday reported Rs 1,240-crore loss on consolidated basis compared with loss of Rs 559 crore in the year-ago quarter.
Though the turnover of the company inched up a little to Rs 4,655 crore during April-June quarter of the current fiscal, its interest outgo remained almost same at Rs 852 crore as the year-ago quarter. There was also a decline in earnings before interest tax depreciation and amortisation to 21% during the quarter from 23% in the corresponding period last year.
JSPL has two coal mines in Australia. With commodity prices continuing at the lower level, the company kept both the two under care and maintenance.
Steel production on consolidated basis, however, grew by 8% during the quarter 1.19 MT. Sales also increased to 1.11 MT during the quarter from 1.07 MT a year ago. However, power generation, excluding Jindal Power, its 100% subsidiary, fell by 22% to 1,402 million kWh while sales were down by 71% to 305 million kWh.
Jindal Power generated 2,171 MU power in Q1 compared to 1,875 MU in the same quarter last fiscal. It generated Rs 668 crore revenue during the quarter compared to Rs 616 crore a year ago.
The company, which had a gross debt of Rs 46,805 crore, as of March 2016, said it is committed to meet all its debt commitments and the company is in discussion with its lenders in India and overseas for restructuring and refinancing. “Simultaneously, the company is focused on reducing its debt through higher cash generation from its operations and divestment of non-core assets,” it said.
On the future outlook for steel, the company said with the introduction of anti-dumping duty and continuation of minimum import price on some products, imports would be restricted which would help local producers achieve higher share of the domestic markets.
“JSPL believes that steel demand would grow at 5% and 6% during Q3 and Q4. With the increased steel demand, prices are expected to rise during the coming months,” it said. The company expects the power demand to look up with growing industrial production and with the opening up of PPA markets, which should open as the UDAY scheme sets in.