Jindal Steel & Power drops after posting poor Q2 results

Jindal Steel & Power dropped 1.92% to Rs 71.70 at 9:40 IST on BSE after the company reported consolidated net loss of Rs 745.98 crore in Q2 September 2016 compared with net loss of Rs 909.53 crore in Q2 September 2015.

The result was announced after market hours yesterday, 8 December 2016.

Meanwhile, the BSE Sensex was up 17.31 points, or 0.06%, to 26,711.94.

On the BSE, 3.4 lakh shares were traded in the counter so far, compared with average daily volume of 13.26 lakh shares in the past one quarter. The stock had hit a high of Rs 74.70 and a low of Rs 71.25 so far during the day. The stock had hit a 52-week high of Rs 98.10 on 31 December 2015. The stock had hit a 52-week low of Rs 48.20 on 12 February 2016.

The stock had outperformed the market over the past 30 days till 8 December 2016, rising 1.25% compared with 3.25% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 15.54% as against Sensex's 8.09% decline.

The mid-cap company has equity capital of Rs 91.49 crore. Face value per share is Re 1.

Jindal Steel & Power's total income fell 1.5% to Rs 4666.22 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin contracted to 18% in Q2 September 2016 compared with 21% in Q2 September 2015, on the back of lower realizations. The company's consolidated net debt as on 30 September 2016 was maintained at similar levels as of previous quarter.

The company said that overall outlook is positive for the company with improving margins accompanied by ramp up in volumes. The company's global ventures are expected to perform well in the coming quarters.

JSPL is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure.

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