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Last Updated : Oct 30, 2013 05:05 PM IST | Source: CNBC-TV18

Jindal Steel & Power Q2 PAT seen down 33.6% at Rs 596 cr

Net sales are seen going up 1 percent to Rs 4,645 crore in three-month period ended September 2013 from Rs 4,607 crore in a year ago period.

 
 
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Jindal Steel & Power (JSPL) will announce its second quarter (July-September) earnings today. According to a CNBC-TV18 poll, analysts on an average expect profit after tax to fall 33.6 percent year-on-year to Rs 596 crore during the quarter.


Net sales are seen going up 1 percent to Rs 4,645 crore in three-month period ended September 2013 from Rs 4,607 crore in a year ago period.


Analysts feel steel performance of the company may improve on the back of higher sales volumes, but power business may drag during the quarter.


Steel sales volume would increase 3 percent Y-o-Y (down 1 percent Q-o-Q) to 6,58,000 tonne while realisations may be flat on a sequential basis.


Analysts expect pellet sales volume to increase 21 percent Y-o-Y (down 4 percent Q-o-Q). Realisations of pellets may improve following couple of export deals prompted, owing to rupee depreciation.


Earnings before interest, tax, depreciation and amortisation (EBITDA) may decline 12 percent on yearly basis to Rs 1,453 crore and operating profit margin may slip 450 basis points Y-o-Y to 31.3 percent in the quarter gone by.


Jindal Power


Power sales volume at Jindal Power is likely to decrease 2 percent sequentially (up 12 percent year-on-year) to 2 billion units. Average rate for the same is likely to remain flat at Rs 3.2 per unit.


Profit after tax for power business is likely to come in the range of Rs 300 crore, say analysts. According to a poll, profit could jump led by commencement of power sale (around 200 MW) to Tamil Nadu at higher tariff (around Rs 4/kwh).


Key issues to watch out for: 1) Update on Angul steel's melt shop; 2) Coal gasification and sponge iron unit is expected to start by December 2013; 3) CPP at Angul will be fully commissioned in FY14; and 4) Progress on signing of mining lease of Utkal coal block.



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First Published on Oct 30, 2013 11:32 am
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