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Last Updated : Jan 28, 2014 12:26 PM IST | Source: CNBC-TV18

Jindal Steel Q3 PAT may fall 36.6% to Rs 550 cr: Poll

Jindal Steel & Power is set to announce its third quarter earnings today. Numbers will be driven more by power business (standalone power business and subsidiary JPL).


Jindal Steel & Power is set to announce its third quarter earnings today. Here's what the CNBC-TV18 poll of analysts expect from the company.


Numbers will be driven more by power business (standalone power business and subsidiary JPL).


Q3FY14 vessus Q3FY13 (Y-o-Y)
-Net sales may rise 5 percent at Rs 5,020 crore versus Rs 4,801.6 crore
-EBITDA may fall 18 percent to Rs 1,470 crore versus Rs 1,789.65 crore
-EBITDA margin may decline to 29.3 percent versus 37.3 percent
-PAT may fall 36.6 percent to Rs 550 crore versus Rs 867.3 crore               

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Factors:
-Steel sales volume will decrease 4 percent Y-o-Y (down 5 percent Q-o-Q) to 705,000 tonne
-Expect pellet sales volume to decrease 33 percent Y-o-Y (down 35 percent Q-o-Q) (Impact of domestic price increases will be limited due to JSP’s presence in long category and expect modest increase in JSP’s realisations)
-Consolidated EBITDA may be lower on account of weak EBITDA in steel business
-Standalone power sales are likely to remain flat Y-o-Y (up 421 percent Q-o-Q) to 605 million units


Subsidiary Jindal Power:
-Power sales volumes at Jindal Power are likely to increase 2 percent Q-o-Q (up 21 percent Y-o-Y) to 2 billion units on plant load factor (PLF) of 93 percent
-Average rate is expected to be Rs 3.2/unit
-PAT should come in at Rs 320 crore (up 25 percent Y-o-Y and 6.5 percent Q-o-Q)


Key issues to watch out for
-Perceived impact (if any) with respect to Shah Commisison report on illegal mining
-Angul steel melt shop is expected to be lit in October-March FY14, but it will take couple of months for production to stabilise
-Coal gasification and sponge iron unit are expected to start in October-March FY14
-Captive power plant at Angul will be fully commissioned in FY14



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First Published on Jan 28, 2014 12:16 pm
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