PremiumLeading player in steel, mining, and infrastructure in India, Jindal Steel & Power (JSPL) missed street's estimates for the quarter ending September 30, 2022, with profitability declining steeply and revenue broadly flat on a year-on-year basis. In Q2FY23, the steelmaker garnered a consolidated net profit of ₹219.27 crore declining by a whopping 91.51% yoy. The company had posted a net profit of ₹2,583.9 crore in Q2 of the previous fiscal.
On quarter-on-quarter, JSPL's consolidated PAT in Q2 dropped by 88.98% compared to ₹1,990 crore in Q1FY23.
JSPL's Q2FY23 PAT took a hit due to a loss on exceptional items to the tune of ₹898.49 crore. According to JSPL's audit report, before exceptional items, its net profit comes to around ₹891.61 crore in Q2FY23.
Consolidated revenue from operations dipped less than a percent to ₹13,521.4 crore in Q2FY23 compared to ₹13,611.71 crore in Q2FY22. However, revenue soared by 3.46% from ₹13,069.17 crore in Q2FY23 largely on improvement in standalone revenues.
EBITDA came in at ₹1,519 crore in Q2FY23 down from ₹4,587 crore in Q2FY22 and ₹2,952 crore in Q1FY23.
On the treasury front, the company prepaid its entire overseas long-term debt & even refinanced a portion of its standalone debt.
Notably, in Q2FY23, the company's consolidated net debt was further reduced to ₹7,054 crore on the back of these repayments as well as working capital release. Net Debt to EBITDA (LTM) as of September 30, 2022, is 0.62x.
During the second quarter, JSPL's steel production dipped to 1.82 million tonnes in Q2FY23 compared to 1.93 million tonnes in Q2FY22 and 1.99 million tonnes in Q1FY23. While production of pellets fell to 1.79 million tonnes in Q2FY23 against 1.80 million tonnes in Q2FY22 and 1.92 million tonnes in Q1FY23.
In terms of sales, the company's steel sales picked up to 2.01 million tonnes in Q2FY23 against 1.74 million tonnes in Q1FY23, however, dropped from 2.13 million tonnes in Q2FY22. Similarly, sales of pellets soared to 0.11 million tonnes in Q2FY23 against 0.03 million tonnes in Q1FY23 but dropped from 0.20 million tonnes in Q2FY22.
On Thursday, JSPL shares closed at ₹475.15 apiece down by 1.23% on BSE. The company's market cap is around ₹48,469.49 crore.