Last Updated on November 2, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
Jindal Steel and Power Limited (JSPL), founded in 1990, is the third-largest private steel producer in the country in terms of tonnage. It is also the only private enterprise in the country to produce rails. JSPL is based in New Delhi and is a part of the OP Jindal Group. The company is involved in the manufacturing and selling of sponge iron and iron ore pellets and coils, among others. JSPL also established the first coal-gasification-based DRI plant in the world in Angul, Odisha, which makes use of the locally available high-ash coil, turning it into synthesis gas to make steel. This technology also became a case study at Harvard University.
JSPL announced its financial results for the quarter ending on September 30, 2023, on Tuesday. The company’s profit surged multifold, beating the analysts’ estimates. Here are its performance highlights and key financial metrics.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights (Consolidated)
- JSPL recorded a staggering 534% YoY rise in its consolidated net profit to ₹1,390 Cr during the period under review from ₹219.27 Cr during Q2 FY23.
- The consolidated total income fell 9.2% YoY to ₹12,282.04 Cr during the quarter.
- As per an exchange filing, the other expenses declined to ₹3,943.72 Cr during Q2 FY24 from ₹4,672.88 Cr during the same period last year.
- The adjusted EBITDA stood at ₹2,213 Cr, growing 19% YoY and adjusted for ₹73 Cr during the quarter.
The steel manufacturer recorded an incredible 6x jump in its net profit during the second quarter of the fiscal year. JSPL clocked a 534% YoY increase in its net profit at ₹1,390 Cr during the quarter, up from ₹219.27 Cr in the corresponding period last year, owing to lower tax liabilities and a decline in other expenses.
The company’s total revenue from operations stood at ₹12,250.16 Cr, compared to ₹13,521.40 Cr. Subsequently, its total income fell 9.2% to ₹12,282.04 Cr during the period. Moreover, Jindal Steel and Power incurred other expenses of ₹3,943.72 Cr, down from ₹4,672.88 Cr during Q2 FY23.
At the operating level, JSPL’s EBITDA rose 19% YoY (adjusted) to ₹2,213 Cr, adjusted for ₹73 Cr during the period. The company’s net debt also increased sequentially, from ₹6,812 Cr during Q1 FY24 to ₹7,313 Cr during Q2 FY24.
As for the production and sales figures, the steel production and sales figures stood at 1.90 MT, a 4% year-on-year increase, and 2.01 MT, respectively. Coming to pellets, the production figures stood at 1.89 million tonnes – an 8.69% decline, while the sales figures stood at 0.08 MT.
Additional Read: Jindal Steel Share Price
Jindal Steel and Power Limited: Consolidated Financial Figures (YoY)
| Particular | Q2 FY24 | Q1 FY24 | Q2 FY23 | H1 FY24 | H1 FY23 |
| Gross Revenue* | ₹14,128 Cr | ₹14,539 Cr | ₹15,534 Cr | ₹28,668 Cr | ₹30,296 Cr |
| Net Revenue | ₹12,282 Cr | ₹12,644 Cr | ₹13,522 Cr | ₹24,926 Cr | ₹26,591 Cr |
| Adjusted EBITDA** | ₹2,213 Cr | ₹2,704 Cr | ₹1,861 Cr | ₹4,917 Cr | ₹5,102 Cr |
| Depreciation + Amortisation | ₹604 Cr | ₹588 Cr | ₹614 Cr | ₹1,191 Cr | ₹1,210 Cr |
| Interest / Finance Cost (Net) | ₹329 Cr | ₹329 Cr | ₹365 Cr | ₹658 Cr | ₹729 Cr |
| PBT (Before Exceptional) | ₹1,385 Cr | ₹1,767 Cr | ₹953 Cr | ₹3,151 Cr | ₹3,455 Cr |
| Exceptional Gain / (Loss) | – | – | ₹(898) Cr | – | ₹(838) Cr |
| Reported PAT / (Loss) (Continuing Operations) | ₹1,390 Cr | ₹1,692 Cr | ₹219 Cr | ₹3,082 Cr | ₹2,209 Cr |
* Including GST and other income
** Adjusted for FX Gain and Loss during different quarters/half years
Jindal Steel and Power Limited: Standalone Financial Figures
| Particular | Q2 FY24 | Q1 FY24 | Q2 FY23 | H1 FY24 | H1 FY23 |
| Gross Revenue* | ₹13,953 Cr | ₹14,220 Cr | ₹15,126 Cr | ₹28,173 Cr | ₹29,688 Cr |
| Net Revenue | ₹12,108 Cr | ₹12,325 Cr | ₹13,115 Cr | ₹24,432 Cr | ₹25,984 Cr |
| Adjusted EBITDA** | ₹2,244 Cr | ₹2,665 Cr | ₹1,426 Cr | ₹4,908 Cr | ₹4,221 Cr |
| Depreciation + Amortisation | ₹555 Cr | ₹540 Cr | ₹544 Cr | ₹1,094 Cr | ₹1,084 Cr |
| Interest / Finance Cost (Net) | ₹258 Cr | ₹258 Cr | ₹320 Cr | ₹516 Cr | ₹578 Cr |
| PBT (Before Exceptional) | ₹1,526 Cr | ₹1,870 Cr | ₹982 Cr | ₹3,395 Cr | ₹3,516 Cr |
| Exceptional Gain / (Loss) | – | – | ₹(1,664) Cr | – | ₹4,141 Cr |
| Reported PAT / (Loss) (Continuing Operations) | ₹1,109 Cr | ₹1,400 Cr | ₹(473) Cr | ₹2,508 Cr | ₹6,150 Cr |
* Including GST and other income
** Adjusted for FX Gain and Loss during different quarters/half years
Stock Performance
Jindal Steel and Power Limited announced its quarterly results for Q2 FY24 on October 31st. On the day, the company’s shares opened at ₹642.40 and dipped 1.54% to close at ₹634.15 apiece on BSE.
About the Company
Jindal Steel and Power Ltd. (JSPL) is India’s third-largest private steel producer in terms of tonnage and belongs to the OP Jindal Group. The company boasts a dominant presence in various sectors, including steel, power, mining, and infrastructure. It currently boasts a 10.42 MTPA iron-making capacity and 1,634 MW CPP. JSPL is currently spearheaded by Mr. Naveen Jindal, and the company has invested around US $12 billion across the world to scale its capacity utilisation and seize opportunities.
Sources:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/2cf10f0e-81b3-4099-8094-15c356d24dd2.pdf
