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Last Updated : Feb 03, 2015 10:47 AM IST | Source: CNBC-TV18

JSPL Q3 profit seen down 52% to Rs 270 cr: Poll

Jindal Steel & Power's (JSPL) third quarter profit after tax is seen falling 52 percent year-on-year to Rs 270 crore, according to the average of estimates of analysts polled by CNBC-TV18. PAT is expected to get hit due to elevated interest cost, say analysts.

 
 
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Jindal Steel & Power's (JSPL) third quarter profit after tax is seen falling 52 percent year-on-year to Rs 270 crore, according to the average of estimates of analysts polled by CNBC-TV18. PAT is expected to get hit due to elevated interest cost, say analysts.


Total income is likely to decline 1 percent to Rs 5,300 crore in the quarter ended December 2014 from Rs 5,377 crore in the year-ago period.


Operating profit may fall 8 percent year-on-year to Rs 1,570 crore and margin may decline 200 basis points to 29.6 percent in the quarter gone by.

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There could be a net loss during the quarter due to exceptional item of Rs 3,000 crore towards additional levy on coal mined at Rs 295 per tonne, feel analysts.
 
Topline impacted by:
-Growth in steel sales volumes from Angul steel plant offset by lower pellet sales and lower realization
-Pellet sales volume could crash on iron ore availability issues
-Average steel prices down 4-5 percent in Q3FY15
 
EBITDA is set to decline on:
-Lower steel realizations and higher raw material costs due to purchase of external ore
-Higher coal sourcing cost
Partly cushioned by:
-Better earnings from Shadeed operations as well as narrowing of losses from Wollongong coal
 
Jindal Power:
-Tamnar I ((1,000 MW power plant)) unit remained stable
-Watch out for generation from Tamnar-2 (2400MW)
 
Key issues to watch out for
-Outcome of coal block auction
-Resolution of iron ore mining issues in the country



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First Published on Feb 3, 2015 10:47 am
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