Jindal Steel and Power Ltd (JSPL) — one of the country’s largest steel-makers — reported a 65 per cent drop in standalone net profit to ₹1,198 crore for the quarter ended March 31, 2022. The net profit in the year-ago-period was ₹3,426 crore.
Standalone gross revenues for the period under review stood at ₹15,609 crore; up 33 per cent, y-o-y compared to ₹11,744 crore in the year-ago period.
High volumes, prices
The increase in revenues came on the back of higher steel volumes and steel prices which was partially offset by lower pellet sales, the company said in a statement, adding that, Ebitda declined by 42 per cent y-o-y to ₹2,827 crore “due to surging coking coal costs”.
Net profit also took a hit due to a write-off taken for mining investment and assets (₹192 crore) and expenses related to water charges for prior year; and relinquishment of long term power agreement, partially offset by a 9 per cent q-o-q fall in interest expense.
The Naveen Jindal-promoted JSPL’s India operations reported its highest ever steel production of 2.11 million tonnes (mt), up 2 per cent y-o-y and sales of 2.08 mt (up 9 per cent y-o-y) in Q4. Pellet production stood at 1.98 mt, a decline of 2 per cent y-o-y.
“Sales were also aided by improved demand from export markets with export share rising to 29 per cent in Q4 (23 per cent in Q3),” the statement added.
Ebitda growth
For the full year, JSPL reported improved steel realisations and higher sales resulting in gross revenues (standalone) rising by 49 per cent y-o-y to ₹55,264 crore; Ebitda increased 15 per cent y-o-y to ₹15,037. Net profit for FY22 stood at ₹8,283 crore. “The Ebitda growth is noteworthy as the year saw a steep increase in coking coal prices and limited benefit accruing due to low cost iron ore inventory as compared to FY21,” the statement said.
The company will aim for 8.5-9 mt of production in FY23, it added.