JSPL Q4 Review - Deleveraging To Continue On Strong Earnings: Motilal Oswal
Sparks fly as molten steel is poured from a ladle at an arc furnace in the steel melting shop of the JSPL plant in Raigarh, Chhattisgargh, India. (Photographer: Udit Kulshrestha/Bloomberg)

JSPL Q4 Review - Deleveraging To Continue On Strong Earnings: Motilal Oswal

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Motilal Oswal Report

Jindal Steel and Power Ltd. achieved its highest ever steel Ebitda/profit after tax of Rs 48.8 billion/Rs 27.7 billion in Q4 FY21, supported by a strong pricing environment.

Consolidated net debt fell further by Rs 34.7 billion QoQ to Rs 224 billion, implying a net debt/Ebitda of 1.53 times.

It has announced an Rs 180 billion capex at Angul to expand its steel capacity by 85% to 15.9 million tonne per annum by FY25, at a very competitive cost of ~$390/tonne.

With the proposed sale of Jindal Power Ltd., the company would become a pure play Indian steel company, which should also aid in better value discovery as the steel business is still under-valued at 4.1 times FY23E enterprise value/Ebitda.

Click on the attachment to read the full report:

Motilal Oswal JSPL Q4Fy21 Result Update.pdf

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