JSPL Q3 PAT stands at Rs 2,567 cr

Jindal Steel & Power (JSPL)'s consolidated net profit stood at Rs 2,566.68 crore in Q3 December 2020 compared with net loss of Rs 218.57 crore in Q3 December 2019.

Consolidated net sales jumped 39.95% to Rs 10,533.51 crore in Q3 FY21 as against Rs 7,526.24 crore in Q3 FY20. JSPL reported pre-tax profit of Rs 2,848.03 crore in Q3 December 2020 as against pre-tax loss of Rs 241.09 crore in Q3 December 2019. Current tax expense for the quarter stood at Rs 5.48 crore as against Rs 0.12 crore in Q3 December 2019. Consolidated EBITDA grew 170.13% to Rs 4,252 crore in Q3 FY20 over Rs 1,574 crore in Q3 FY19. The Q3 result was declared during market hours today, 21 January 2021.

The quarter ended December 2020 showed recovery signs for the entire steel industry in India with utilization levels as well as domestic demand rising month-on-month (M-o-M). However, steel industry continues to struggle with raw material scarcity amplified by exponential rise in domestic and international iron ore prices.

Strong performance in India steel as well as power business in Q3 FY21 helped JSPL report a consolidated gross revenue of Rs 11,704 crore, recording a 39% year-on-year (Y-o-Y). All operational assets except Australia reported positive EBITDA in Q3 FY21. JSPL continues to benefit from improving operating and financial leverage.

On a standalone basis, steel production rose 19.87% to 1.93 million tonnes (MT) in Q3 FY21 as compared to 1.61 million tonnes (MT) in Q3 FY20. Steel sales, also witnessed a 11.97% year-on-year (Y-o-Y) spurt to 1.87 MT in Q3 FY21 as against 1.67 MT in Q3 FY20.

Improved demand and coal availability resulted in Jindal Power (JPL) reporting generation of 4,180 MT in Q3 FY21. Higher volumes coupled with lower coal costs led to JPL reporting an EBITDA of Rs 303 crore during the quarter, registering a 18% Y-o-Y jump. This was partially offset by lower realizations. Q3 FY21 EBITDA also includes one-time expenses and provision of Rs 327 crore. JPL continues to generate cash profits of Rs 366 crore in the reported quarter.

Meanwhile, the Ministry of Coal, Government of India (GoI) has declared JPL as the successful bidder for Gare Palma IV/1 coal mine. Jindal Power won an auction for Gare Palma IV/1 coal mine at 25% bid premium of the representative price. The mine has peak rated capacity of approx. 6 million tonnes per annum (MTPA). The mine should further strengthen JPL's raw material security and help reduce costs. The company currently awaits the vesting orders for the mine.

Shares of JSPL fell 1.26% to Rs 301.10. JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.

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