JSPL Q2 profit jumps manifold as tax liability, expenses fall

New Delhi: Jindal Steel & Power Ltd (JSPL) on Tuesday reported a 534% year-on-year surge in its consolidated net profit to ₹1,390 crore in the September quarter due to lower tax liabilities and a fall in other expenses during the quarter.

The Naveen Jindal-led company's consolidated net revenue, however, fell 9.2% to ₹12,282 crore in the quarter.

“We are happy to see our coal mines finally starting. Shipments from Gare Palma IV/6 are already being received at Raigarh. Our quarterly results are significantly up year on year with sales volumes sustained in a traditionally weak quarter. We expect the demand to be robust in the second half of the current fiscal as India continues to march to a different drumbeat,” said Bimlendra Jha, managing director of Jindal Steel & Power, in a statement.

The company's other expenses fell to ₹3,943 crore in the second quarter of the current fiscal from ₹4,672 crore in the year-ago period. The company had incurred other expenses of ₹898 crore in the year-ago period and zero expenses in the quarter under review.

Adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) for Q2FY24 stood at ₹2,213 crore, a rise of 19% YoY and adjusted for ₹73 crore during the quarter. The company’s net debt increased to ₹7,313 crore at the end of the September quarter from ₹6,812 crore at the end of the June quarter of the current fiscal year.

Production and sales of steel for the company during the quarter stood at 1.9 million tonne, a 4% YoY rise, and 2.01 million tonne, respectively. Production and sales for pellets stood at 1.89 MT, an 8.69% fall, and 0.08 MT, respectively. This was helped by the increase in the share of exports to 13% for the quarter in consideration, the company added.

JSPL also said its balance sheet continued to strengthen while supporting the ongoing capital expenditure (capex), which for the quarter stood at ₹ 1,836 crore driven by the expansion projects in the country.

The company’s Mozambique venture’s coking coal sales stood at 234 kilo tonne, while the thermal coal sales stood at 150 kt. Its South Africa venture’s mine reported product sales of 83 kt during the quarter. While the Australian venture’s dispatches during the quarter were 162 kt, Wongawilli Colliery remains under care and maintenance. The company also reported that its coal mining at Gara Palma IV/6 commenced, while its Angul pellet plant was under stabilization.