JSPL reports highest ever sales volume, Q3 results show growth in sales and reduction in debt

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Jindal Steel and Power Limited has reported the highest ever sales volume in the third quarter for the financial year 2019-20. The Quarter ending December 2019 marked new highs in steel production and sales for the JSPL coupled with a significant reduction in debt. In a quarter where pricing was steeply down in October followed by demand-led recovery towards the latter part of the quarter, the company was able to market and sell unprecedented volume.

JSPL

JSPL standalone reported a rise in production of 22% YoY for steel and related products to 1.61 million tonnes (1.32 million tonnes in 3QFY19) and sales during 3QFY19 of 1.67 million tonnes (up 31% YoY). Crude steel production in standalone also rose to 1.53 million tonnes (up 25% YoY) while sales were at 1.61 million tonnes (up 34% YoY).

In a market where steel prices remained muted for a substantial part of the quarter, the revenue for the JSPL standalone came in at Rs. 6,640Cr. Despite a steep fall in prices at the beginning of the quarter, the company was able to offset it partially through raw material cost savings and improving efficiencies, on the back of higher production.

JSPL standalone reported EBITDA at Rs. 1,352 Cr. During 3QFY20, the production of pellets was 1.79 million tonnes. The company also achieved a rise of 13% YoY in external sales of pellets and sold 0.65 MT during 3QFY20.

As for Jindal Power Limited, the slowdown in economic activities along with the extended monsoon resulted in lower power demand during the quarter. JPL generated 1,900 million units in the reported December quarter as compared to 2,271 million units in 2QFY20.

Despite been a low generation quarter, the cash profit for 3QFY20 saw a rise of 38% compared to the same quarter in FY19. JPL reported EBITDA of Rs. 257 Cr.

JPSL Consolidated Performance

JSPL, on a consolidated level, produced 2.11 million tonnes of steel & related products (up 19% from 1.77 million tonnes in 3QFY19) and sold 2.24 million tonnes of steel & related products (up 30% from 1.73 million tonnes in 3QFY19).

In terms of crude steel, for the consolidated entity, the company produced 2.03 million tonnes of crude steel on the consolidated level (up 21% from 1.68 million tonnes in 3QFY19) and sold 2.18 million tonnes of crude steel (Up 32% from 1.65 million tonnes in 3QFY19).

JSPL reported consolidated revenue of Rs. 9,300 Cr & consolidated EBITDA of Rs.1,820 Cr. net debt for the quarter ending December ‘2019 was reported at Rs. 35,457 Cr (reduction of Rs.1,150 Cr QoQ).

 

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