Jindal Steel slips 12% on disappointing March quarter results

In Q4FY19, the company's consolidated net loss widened to Rs 2,713 crore from Rs 426 crore in Q4FY18.

Shares of Jindal Steel and Power(JSPL) slipped 12 per cent intra-day to Rs 144 per share on the BSE after the company reported a 14 per cent year-on-year (y-o-y) decline in its consolidated operating profit at Rs 1,845 crore in March quarter (Q4FY19) due to higher expenses and finance costs. 

The consolidated Ebitda (earnings before interest, tax, depreciation and amortisation) margin was down 18 per cent from 25 per cent in the yea-ago quarter.

The company said average industry price realisations fell sharply during the quarter as domestic steel prices dropped until January this year before witnessing a modest recovery. It further added that the steel margins were under pressure with decline in average realisation and higher input costs.

The consolidated net loss during the quarter widened to Rs 2,713 crore from Rs 426 crore in the year-ago period. The expansion in net loss during the quarter was on account of one-time payment of Rs 1,734 crore. This included writing off Rs 1,356 crore of differential royalty paid earlier after the Supreme Court cancelled several coal block allocations in its September 2014 judgment, and loss on discard of PGP plant and disputed electricity duty liability of Rs 379 crore of a captive unit.

Depreciation and amortisation expenses also shot up 147 per cent to Rs 2,373 crore, which included Rs 1,287 crore on account of impairment of assets in Australian subsidiaries. Consolidated revenue grew 18 per cent at Rs 10,159 crore on y-o-y basis.

At 11:07 am, the stock of JSPL was trading 10 per cent lower at Rs 147 on the BSE. In comparison, the S&P BSE Sensex was up 0.25 per cent at 39,068 points. The trading volumes on the counter almost doubled with a combined 19 million shares changed hands on the NSE and BSE so far.