JSP Q3 FY22 PAT Dips 34% To Rs. 1621.68
Mumbai, Feb 8: Jindal Steel and Power on Tuesday reported a 34 per cent decline in consolidated net profit for the quarter ended December 31, 2021 at Rs. 1621.68 crore on the back of higher expenditure and tax expenses.
The company had reported a PAT of Rs. 2439.89 crore in the corresponding quarter last fiscal. It’s revenue from operations increased by 35.43 per cent to Rs. 14,152 crore from Rs. 10,449 crore in Q3FY21. “The continued resilient performance by all businesses including overseas mines, contributed in JSP reporting consolidated gross revenues of Rs 14,152 crore and EBITDA of Rs 3,310 crore in 3QFY22.
Consolidated PAT of Rs 1,622 crore fell by 34 per cent Y-o-Y due to lower operating profit and higher tax expense,” the company said. It further said that the strong operational cash flows, declining finance cost, and lower capex have all contributed towards continuous deleveraging in 3QFY22. The company’s consolidated net debt declined further to Rs 10,981 crore in 3QFY22. “JSP’s unflinching focus on strengthening its balance sheet over the past several years has resulted in its net debt declining by Rs 35,500 crore from a peak of Rs 46,500 crore in FY16,” it said, adding that the conclusion of Jindal Power divestment will result in net debt declining further, taking JSP a step closer to its vision of becoming a net debt free company by FY2023, a rare feat in the steel sector. The company is currently in the process of getting relevant approvals from the lenders and aims to conclude the divestment by the end of this financial year, it said. On a standalone basis, the company’s steel production during the quarter stood at 1.96 million tonne while its sales stood at 1.82 million tonne. “While Q3FY22 witnessed a sharp improvement in domestic demand on a sequential basis, the quarter continued to be marred by unseasonal rains, lack of railway rakes and muted demand amidst rising Covid-19 cases. Steel demand in India registered a 7 per cent Y-o-Y fall in 3QFY22. JSP sold more domestically this quarter, reflecting the industry trend,” it said. JSP further noted that the government’s infrastructure push in the recent budget, increased rake availability and rising private capex should further boost domestic steel demand. “This bodes well for JSP with two thirds of its product portfolio catering largely to India’s construction and infrastructure sector,” the company added. JSP further said that during FY21, it took a steely resolve by envisioning 50:15:15 approach, which included Rs 50,000 crore revenues, more then Rs 15,000 crore EBITDA and less than Rs 15,000 crore net debt and is now on track to achieve the target for FY 22 as well.
