Naveen Jindal-promoted Jindal Steel and Power Limited (JSPL) has reported turnover of Rs 6,573 crore during the second quarter (July to September) of current financial year on the back of varied product portfolio and sustained efforts to market and sell value-added products.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 1,255 crore. The quarter ended September highlighted the strength in diversified and differentiated product profile of JSPL, the company said in a statement.
"Though the quarter was due to be the weakest given the monsoon season, further weakened by muted economic growth in the country, products like rails, structures, plates and other such value-added products helped the company partially offset the steep fall in prices and profitability," it said.
Despite of being traditionally the weakest quarter due to lack of construction activity during rains, on back of Angul production ramp-up, JSPL standalone reported a rise in production of 16 per cent year-on-year for steel and related products to 1.58 million tonnes (1.36 million tonnes in Q2 FY19) and sales of 1.46 million tonnes (up 10 per cent year-on-year).
Crude steel production rose to 1.44 million tonnes (up 11 per cent year-on-year) while sales were at 1.33 million tonnes (up 5 per cent year-on-year).
While the rail universal beam mill continues to generate volumes more than double as compared to the same period last year, the plate mills continued to roll out plates at the same intensity quarter-on-quarter.
During Q2 FY20, production of pellets witnessed a rise of 12 per cent year-on-year at 1.81 million tonnes. The company achieved a rise of 43 per cent quarter-on-quarter in external sales of pellets and sold 0.74 million tonnes during Q2 FY20.
On the other hand, Jindal Power Ltd generated 2,271 million units in the September quarter as compared to 2,427 million units in Q2 FY19. The revenue rose by 4 per cent EBITDA stood at Rs 299 crore.
"Despite been a monsoon hit low generation quarter, the power business continues to generate cash with cash profits at Rs 228 crore for the reported quarter," the company said.
Weather conditions, especially extended monsoon and flooding across various states, and a slowdown in economic activities in major states resulted in lower power demand. At the same time, coal production was impacted due to heavy monsoon and labour strike, further worsening the coal shortage situation for power generators.