JSPL moves up after declaring improved Q4 earnings

Jindal Steel & Power rose 0.85% to Rs 67.15 at 09:18 IST on BSE after the company reported consolidated net loss of Rs 363 crore in Q4 March 2016, lower than consolidated net loss of Rs 581 crore in Q4 March 2015.

The result was announced after market hours yesterday, 4 May 2016.

Meanwhile, the S&P BSE Sensex was up 86 points or 0.34% at 25,187.73

On BSE, so far 1.56 lakh shares were traded in the counter as against average daily volume of 18.97 lakh shares in the past one quarter. The stock hit a high of Rs 67.60 and a low of Rs 65.45 so far during the day. The stock had hit a 52-week high of Rs 148.30 on 6 May 2015. The stock had hit a 52-week low of Rs 48.20 on 12 February 2016.

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

Turnover rose 7% to Rs 4874 crore in Q4 March 2016 over Q4 March 2015. Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) rose 9% to Rs 896 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin was reported at 18% in Q4 March 2016, same as in in Q4 March 2015.

On a consolidated basis, JSPL reported net loss of Rs 1999 crore in the year ended March 2016, higher than net loss of Rs 1455 crore in the year ended March 2015. Turnover fell 6% to Rs 18412 crore in the year ended March 2016 over the year ended March 2015. EBITDA fell 39% to Rs 3483 crore in the year ended March 2016 over the year ended March 2015. EBITDA margin was reported at 19% in the year ended March 2016, lower than 29% in in the year ended March 2015.

In its outlook, JSPL said that its endeavor for the year ending March 2017 (FY 2017) would be to fully utilize its consolidated capacities of 6.75 MTPA in steel. With Steel prices looking up in recent times on the back of rise in global steel prices and government support through minimum import price (MIP), the company is looking to improve its net sales realization (NSR) substantially during the year and generate higher EBITDA. Ramp up of Oman rebar mill and commissioning of Angul rebar mill should further help increase these realizations.

In power business, the company expects the demand to pick up, both in short term & long term markets. With the summer setting in, the demand and the exchange prices should move higher, helping the company generate higher revenues. Also, the company believes the UDAY scheme by the Government of India is a commendable scheme, which could catalyze the PPA markets in the coming year.

Supported by government's novel initiatives like Make-in-India campaign, 24X7 power, housing for all, dedicated freight corridors, smart city initiative, JSPL envisages the demand for steel and power to increase in near future and help JSPL sweat its assets to generate additional revenues and higher operating profits in FY 2017 and beyond, the company added.

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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