BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Jindal Steel & Power Ltd.’s Q1 FY22 result was strong as expected, with the highest ever Ebitda/tonne of Rs 28,098/ tonne (7% above our estimate).
However, JSPL's standalone Ebitda fell 7% QoQ to Rs 45.3 billion due to a 16% QoQ decline in volume.
Adjusted for the Jindal Power Ltd. divestment, net debt fell only 4% QoQ to Rs 152 billion due to an increase in working capital.
We raise our FY22E Ebitda by 13% on expectations of higher steel prices in the fiscal.
Strong cash flows, coupled with cash proceeds of Rs 30.1 billion from the Jindal Power divestment, should lead to a fall in net debt to Rs 34.5 billion by FY23E, implying 0.3 times FY23E Ebitda.
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