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Jan 18, 2012, 09.59 AM IST
Jindal Steel and Power is expected to report a profit after tax of Rs 1,006 crore in the third quarter of FY12, a growth of 5.8% as compared to Rs 951 crore in the corresponding quarter of last fiscal; and 14.9% growth as compared to previous quarter.
Revenue is seen going up by 40% to Rs 4,431 crore from Rs 3,168.15 crore during the same period while it was flat on quarter-on-quarter.
EBITDA is likely to go up by 16% to Rs 1,840 crore in the quarter ended December FY12 versus Rs 1,592.9 crore in a year ago quarter; and seen up 9.1% growth quarter-on-quarter.
EBITDA is expected to be at 41.5% versus 50.3% year-on-year and 38.3% quarter-on-quarter.
Factors to watch:
Indian steel industry is likely to register losses related to payables on imported coking coal on account of 8.5% depreciation in the rupee from September 2011 but
JSPL is protected in the near term: short-term forex liabilities fully hedged but MTM loss on long-term ECB
Short-term forex liability such as buyer’s credit for coking coal has been fully hedged
Notional loss is expected: ECB of Rs 20 billion is unhedged and likely to suffer from MTM forex loss
In Q2FY12, the company booked forex loss of Rs 1 billion.
But the repayment is only after 2-3 years hence any appreciation from the current level will negate this MTM noiotnal loss
Strong growth in pellet and steel will drive revenue growth
Saleable steel volume is likely to be up 20% YoY and up 7% QoQ but steel realizations likely to remain flattish
Also its pellet plant expansion is ramping up and is expected to boast its sales volumes which is likely to see a 10% increase on a QoQ basis
Margins are likely to improve QoQ due to higher share of pellets
JSPL has recently commenced commercial operation of its 4th Unit of 135 MW power generation capacity in January 2012 at Chhattisgarh
However, for Q3FY11 contribution will be counted for only 3 units of 135 MW each ((2 Units in Chhattisgarh and 1 Unit in Odisha, Angul)
Orissa, Angul units: PLF is 90%, but under pressure as 75% coal is from e-auction
Two units of 135MW unit at Angul have been commissioned and are ramping up well (Only 1 has started commercial production)
Subsidiary Jindal Power's (JPL) standalone sales volume is likely to be marginally up but average rate is likely to be slightly lower at INR3.7/unit
Tags: Jindal Steel and Power
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