Jindal Steel & Power reported rise of 16.94% in top line sales for the Sep-20 quarter at Rs8,989.79cr. However, the company managed a turnaround at a time when the steel business in particular had been struggling. That is evident from sequential numbers.
The operating profits for the quarter ended Sep-20 was up almost 3-fold on a yoy basis at Rs1,829.35cr. At the same time, the net profits for the Sep-20 quarter showed a turnaround with profit at Rs903.3cr as against net loss of Rs320.7cr in the Sep-19 quarter.
This had an overall impact on the margins of Jindal Steel & Power too. For the Sep-20 quarter, the operating profit margins or OPM was up from 7.67% in Sep-19 to 20.25% in the Sep-20 quarter. Of course, the net margins turned out to 10.05% in the Sep-20 quarter.
Financial highlights for Sep-20 compared yoy and sequentially
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
8,989.79 |
7,687.78 |
16.94% |
7,584.73 |
18.52% |
|
Operating Profit |
1,829.35 |
589.36 |
210.40% |
1,337.97 |
36.73% |
|
Net Profits |
903.30 |
-320.66 |
-381.70% |
290.94 |
210.48% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
8.26 |
-2.20 |
|
2.02 |
|
|
OPM |
20.35% |
7.67% |
|
17.64% |
|
|
Net Margins |
10.05% |
-4.17% |
|
3.84% |
|
Key takeaways from the Sep-20 quarter results
-
The impact on the business was not too high in the Jun-20 quarter but the latest figures of Sep-20 show that the company has emerged from the worries over COVID as well as the downcylce in demand that the steel sector was witnessing.
-
In terms of the product mix, Jindal Steel and Power derived 83% of its revenues from the steel sector with the balance coming from Power and other businesses. Jindal Steel & Power reported record high steel production including pig iron in the Sep-20 quarter.
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