JSPL Q1 result: Net profit soars 967 percent to Rs2,516 cr

10 Aug , 2021 By : Kanchan Joshi

Jindal Steel and Power registered a staggering ten-fold rise in its consolidated profit during the June quarter of this fiscal. The Indian steelmaker posted consolidated net profit of Rs2,515.71 crore during the quarter under review, as opposed to Rs235.71 crore in the year-ago period.

The June quarter marked exemplary performance by all businesses including steel and overseas mines and minerals businesses, JSPL said in a regulatory filing on Tuesday.

As a result, the company reported net revenues of Rs10,609.50 crore during June quarter, up 63 per cent against Rs6,517.52 crore. Total income stood at Rs10.643.17 crore, compared to Rs6,519.27 crore in same period last year.

Consolidated EBITDA grew 151 per cent to Rs4,539 crore during the period under review, as against Rs1,810 crore in the corresponding quarter last fiscal.

Jindal Steel and Power produced 2.01 million tonnes of steel, a record high, and 2.16 million tonnes of pellets during June quarter. This was substantially higher than 1.67 million tonnes and 1.87 million tonnes, respectively, produced in the first quarter last fiscal.

The company sold 1.61 million tonnes of steel, against 1.56 million tonnes in the year-ago period. Pellets sales during the quarter stood at 0.40 million tonnes against 0.83 million tonnes.

"Continued cash generation, declining finance cost, lower capex and debt associated with JPL moving out of JSPL’s consolidated books have all contributed to continued deleveraging in 1QFY22. Consolidated net debt has declined further to Rs15,227 crore in 1QFY22 (from Rs22,146 crore in March 2021). Conclusion of JPL divestment (now accounted as asset held for sale) will result in net debt declining further, taking JSPL a step closer to its vision of becoming a Net Debt free company," JSPL said in its filing.

"The balance sheet continues to strengthen further with Net Debt to EBITDA improving to 0.96 (from 1.53x in the previous quarter)," it further added.

Jindal Steel and Power shares ended Tuesday's trade at Rs399.20, down 18.85 points or 4.51 per cent.