ICICI Securities has come out with its first quarter (April-June) earnings estimates for the metal sector. The brokerage house expects JSPL to report a net loss of Rs 939.8 crore.
Sales are expected to increase by 13.1 percent Q-o-Q (up 24.6 percent Y-o-Y) to Rs 5514.1 crore, according to ICICI Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 14 percent Q-o-Q (down 5.4 percent Y-o-Y) to Rs 935.8 crore.
ICICI Securities report on JSPL
Steel volume trajectory will remain nearly flat Q-o-Q, with similar pricing trajectory as peers. The company is yet to get the transit order for the iron ore fines inventory from Sarada mines, hence won’t get any benefit from the raw material costs. The company guides to increase steel production from 3.3mnte to 4.2mnte in FY17.
Jindal Power (JPL) has again witnessed a muted PLF of 31-32 percent in Q1FY17. June 2016 though has seen the start of 165MW of PPA being supplied to Kerala State Electricity board. The company is yet to decide whether to restate the power assets to fair value or to maintain historical value of asset recognition. Incase assets are restated to fair value there will be some increase in depreciation.
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