December 14, 2016 / 16:16 IST
EBITDA of standalone ops fell 24% QoQ/31% YoY at Rs 4.3bn, below PLe of Rs 5.4bn. Loss of standalone ops expanded to Rs 4.1bn (PLe:Rs 2.9bn) against loss of Rs 2.8bn/Rs3.1bn in Q1FY17/Q2FY16. Shadeed posted 60% QoQ/25% YoY drop in EBITDA to US$13m (PLe:US$29m) due to sharp drop in realisations. Jindal Power (JPL) reported flat (+8% YoY) EBITDA to Rs 1.8bn (PLe:Rs 1.9bn). Consolidated EBITDA fell 23% QoQ (‐17% YoY) to Rs 6.7bn (PLe:Rs 9.2bn). Loss expanded to Rs 7.5bn (PLe:Rs 5.4bn) against loss of Rs 4.6bn/Rs 5.5bn in Q1FY17/Q2FY16.
Outlook
Jindal Steel and Power (JSP) reported Q2FY17 earnings below our expectation due to lower than estimated earnings in steel operations. JSP would be best placed to exploit the benefit of steep increase in steel prices as 70% of its production comes through non‐coking coal route. Earnings outlook for FY18 remains strong on the back of better outlook on steel prices, commissioning of BF in Angul and signing of PPA with UPSEB. We reiterate BUY with TP of Rs 100, valuing steel operations at 6x EV/EBITDA FY18E and JPL (3400MW) at Rs 45m/MW.
For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
