Jindal Steel and Power Ltd (JSPL) one of India’s prominent steel producers announced its yearly results for FY’20 today. SteelMint attended the investor conference call and below are the major highlights:
Crude steel output rises by 13% in FY’20- Company’s crude steel production increased by 13% to 6.30 MnT in FY’20 while in FY19 the same stood at 5.59 MnT.
Saleable steel sales up by 12% in FY’20- The producer’s saleable steel sales increased by 12% to 6.06 MnT in FY’20 as against 5.41 MnT in the previous fiscal.
Pellet production up by 3% in FY’20- The Company’s pellet production witnessed a moderate increase of 3% on the year to 7.28 MnT in FY’20. While the pellet sales reduced by 19% Y-o-Y in FY’20 to 2.37 MnT.
EBIDTA down by 4% in FY’20- Company’s EBIDTA stood at INR 5,777 Cr in FY’20, declining 4% as compared with INR 6,017 Cr a year ago. On a quarterly comparison, the same increased by 16% to INR 1,562 Cr in Q4 FY’20 as compared to INR 1,352 Cr in Q3 F’20.
PAT turns positive after 6 years in FY’20 – The company bagged its first ‘Profit’ After Tax (PAT) after 6 years of gap, which stood at INR 618 Cr in FY20. However, in the previous fiscal, the company had registered a loss of around INR 263 Cr. Also the same increased significantly on a quarterly basis to INR 282 Cr in Q4 in contrast with INR 97 Cr in the preceding quarter.
Pellet exports jump substantially on dull domestic demand- The company’s pellet exports used to be 200,000 MT on a monthly basis. However lackluster demand in the domestic market resulted in a substantial increase in exports. Currently, the company is exporting 400,000 MT on a monthly basis.
Steel exports likely to come down in Jun’20- The company booked more than 700,000 MT towards the end of Mar’20 as the domestic sales remained mute amid lock-down. In Apr’20, the company churned out 560,000 MT of steel out of which 248,000 MT was exported. Also in May’20 till yesterday the company exported 300,000 MT of steel. In Jun’20, the share is likely to come down to 50%.
JSPL aims to maintain EBITDA INR 9000/MT – The company aims to achieve an EBITDA of INR 9000-9500/MT with the right product mix and reduction in the cost of production. Also, the company is aiming to maintain this guidance for the whole year.
Company is all set to benefit from the recent government initiatives: With about 50 mines set to be auctioned in the next few weeks, the company can look to win coal mines to secure raw material supply for the entire JPL power capacity. Also, with the recent package of the Government of India for Discoms, JPL would look to substantially realize its pending receivables from TANGEDCO.
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