JSPL Q1 Review - Underperformance, Valuations, Fall In Iron Ore Drives Upgrade: Prabhudas Lilladher
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Prabhudas Lilladher Report
Jindal Steel and Power Ltd. reported Q1 FY22 Ebitda above our/consensus estimates by 7%.
The beat was primarily on count of higher realisations.
Ebitda/tonne increased by 10% QoQ/Rs 2,525 to Rs 28,100, above our estimate of Rs 26,075.
JSPL reduced net debt by 73%/Rs 303 billion (including cash of Rs 30.4 billion to be received on closure of Jindal Power Ltd. deal) since FY17 through free cash flow generation and divestment of Oman steel operations and Jindal Power.
55% of the total reduction was contributed by divestments (49%) and issuance of equity (6%) while rest through operating cash flows.
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