Jindal Steel & Power Ltd.’s losses widened sixfold due to a one-time expense in the quarter ended March.
Net loss stood at Rs 308 crore as compared with Rs 49.5 crore in the year-ago period, JSPL said in its filings with the stock exchanges. That was higher than the Rs 28.5 crore loss estimated by analysts tracked by Bloomberg. The bottom line was hit by a one-time payment of Rs 437.6 crore, including certain demands and claims from regulatory authorities, the filing added.
Revenue rose 36.67 percent to Rs 8,598.7 crore aided by a production ramp-up at JSPL’s Angul plant. The top line too surpassed the Rs 8,148.5 crore estimated.
“We are targetting more than 2,00,000 tonnes of steel production at the Angul plant. The ramping up process is happening as per schedule,” CEO N A Ansari told BloombergQuint.
- Earnings before interest, tax, depreciation and amortisation rose 37.7 percent to Rs 2,136.5 crore.
- The operating margin expanded to 24.8 percent from 24.7 percent.
Production volumes rose 38 percent in the reported quarter to 1.26 million tonnes. The company’s outlook for steel remains positive as both demand and prices remain robust, internationally and domestically, JSPL said.
JSPL steel unit remains the mainstay of the business as higher coal prices weigh on its power generation arm.
With the steel intensity increasing in the country, coupled with government’s push towards more steel structures, the demand is set to rise.JSPL Statement
Ansari said he expects the steelmaker’s debt to ease by Rs 4,000 to 5,000 crore in the ongoing financial year.
Shares have risen over 130 percent in the last one year compared to a 19.3 percent rise in the benchmark S&P BSE Sensex Index. The BSE Metal Index rose 28.6 percent in the same period. It closed 1.63 percent higher at Rs 261.80 on the NSE today.
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