JSPL turns volatile after Q2 results

Jindal Steel & Power was down 0.17% to Rs 240.20 at 15:18 IST on BSE after the company reported weak Q2 September 2013 results.

The result was announced during trading hours today, 30 October 2013.

Meanwhile, the BSE Sensex was up 102.23 points, or 0.49%, to 21,031.24.

On BSE, 1.70 lakh shares were traded in the counter compared with average volume of 3.22 lakh shares in the past one quarter.

The stock rose 1.21% at the day's hit a high of Rs 243.50 so far during the day. It fell 1.66% at the day's low of Rs 236.60 so far during the day.

The stock hit a 52-week high of Rs 473.90 on 20 December 2012. The stock hit a 52-week low of Rs 181.55 on 2 August 2013.

The stock had underperformed the market over the past one month till 29 October 2013, rising 1.73% compared with the Sensex's 6.09% rise. The scrip had, however, outperformed the market in past one quarter, rising 20.69% as against Sensex's 6.82% rise.

The large-cap company has an equity capital of Rs 93.48 crore. Face value per share is Re 1.

On a consolidated basis, Jindal Steel & Power (JSPL)'s net profit tumbled 49.62% to Rs 452.07 crore on 4.96% increase in total income to Rs 4968.71 crore in Q2 September 2013 over Q2 September 2012.

The company said the drop in earnings were caused largely due to drop of 12-15% in price levels and interest and depreciation burden of investments made in Angul phase - 1 steel plant and upgradation of Raigarh steel plant.

JSPL said it has a positive and optimistic outlook for Q3 December 2013 and Q4 March 2014.

JSPL's said total sale of steel products rose 16% to 7,39,879 MT in Q2 September 2013 over Q2 September 2012. Total sale of pellets increased 47% to 639227 MT in Q2 September 2013 over Q2 September 2012. Total power sales slumped 79% to 116 kilowatt hour (kWh) during the period under review.

JSPL said on the global front, Mazambique mining operations gathered further momentum and is now all set to achieve its rated capacity of 3 MTPA by 31 March 2014. Both Oman and South Africa units also exceeded their performance over the same quarter of the previous year.

The company's subsidiary, Jindal Power, reported a 16% rise in profit after tax to Rs 300.58 crore on 18% increase in turnover to Rs 664.90 crore in Q2 September 2013 over Q2 September 2012. Power generation increased 12% to 2099 million units in Q2 September 2013 over Q2 September 2012. Plant load factor (PLF) rose to 95.07% in Q2 September 2013 from 85.04% in Q2 September 2012.

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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