JSPL clocks net profit of Rs 268 cr in Q1

Jindal Steel & Power (JSPL) reported a consolidated net profit of Rs 268 crore in Q1 June 2020 as against net loss of Rs 87 crore in Q1 June 2019.

Net revenue fell 7% year-on-year (YoY) to Rs 9,279 crore during the quarter. EBITDA rose 10% to Rs 2,384 crore in the June quarter from Rs 2,173 crore in the corresponding period last year. EBITDA margin stood at 26% in Q1 June 2020 as against 22% in Q1 June 2019.

Profit before tax stood at Rs 401 crore in Q1 FY21 as against Rs 11 crore in Q1 FY20 on back of increased volumes and lower raw material prices.

On a consolidated level, JSPL's steel production rose 4% YoY to 2.03 million tonnes (MT) while steel sales jumped 8% YoY to 2.07 MT in the the reported quarter.

The company's net debt to EBITDA at the end of quarter ending June 2020 stood at 4.29 times, with net debt reducing by around Rs 1,324 crore. As on 30 June 2020, JSPL reported consolidated net debt of Rs 34,621 crore.

"The quarter ending June 2020 may have been challenging, particularly for the Steel & Power Sector, as the world was reeling from a pandemic-induced recession and lockdowns to check the spread of Covid-19, but JSPL held its own and continued its growth momentum with increased steel volumes. JSPL's ability to adapt to the changing economic environment, and pioneer innovation, especially when steel consumption was muted, was the key in the Company reporting a growth quarter," the steel maker said in a statement.

JSPL is a steel producer with presence in power generation and mining.

Shares of JSPL fell 3.02% to Rs 173.30. It had traded in the range of Rs 168.75 and Rs 181.25 during the day.

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