Jindal Steel

Jindal Steel & Power Ltd (JSPL) did well for Q3Fy14. Its consolidated turnover at Rs.5377 crore was up 8% QoQ and up 12% YoY. EBITDA came in at Rs.1701 crore, down 5% YoY but sequentially, it was up 17%. Net profit at Rs.559 crore was 23% higher on QoQ but YoY was down 36%. JSPL acquired a majority stake in NRE – Gujarat (GNRE), a company based in Australia producing Prime Quality Hard Coking coal, which will further enhance JSPL’s input material security. Integration of GNRE however negatively impacted JSPL’s PAT by Rs 68.69 crore.

Its interest outgo was huge at Rs.429 crore v/s Rs.380 crore in Q2FY14. Depreciation also jumped up during the quarter to Rs.460 crore from Rs.434 crore on account of the recently commissioned Angul Steel Plant.

The production of overall products was stable. Sponge iron production rose 1% (YoY), pig iron and hot metal fell 4%, steel products rose 6%, pellers rose 9% and HBI was down 1%. And in terms of revenue growth, exports rose 51%, HBI was up 48% while steel products was more staid with a growth of 4%.

Its power unit, Jindal Power, which is a subsidiary of the company, showed a 18% rise in generation at 2116.39 million units, up 18%. Its turnover rose 9% and net profit was at Rs.266 crore, up 4%. PLF improved from 81.05% to 95.89%. It also completed the second 600 MW unit of Tamnar Phase II and is all set to complete the third unit before March 31, 2014.

JSPL’s Angul Steel project remains on track, although small delays were caused due to external interference with the execution of water supply works. 1st Phase of Angul Project will be fully ready before the end of Feb 2014. New Pelletization plant of 4.5 MPTA is progressing well and will go into commercial production by the end of Feb 2014.