Jindal Steel and Power Ltd (JSPL) has reported a consolidated net profit of Rs2.68bn ($36mn) in the first quarter of the financial year 2021 (March-June) on the back of increased steel volumes and low raw material prices, compared to the net loss of Rs 870mn in the same quarter prior year, according to a company report.
The company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 23.84bn in Q1, up by 10pc from Rs21.73bn in the same quarter prior year and up by 7pc from the previous quarter.
The company produced 2.03mn mt of steel in the quarter, up by 4pc from the prior year quarter. Sales were recorded at 2.07mn mt, up by 8pc from Q1FY2020. The production rose by 4pc from the prior year quarter.
On standalone basis, company posted a net revenue of Rs67.41bn, down by 18pc, compared to the prior year quarter, but unchanged from the prior quarter. Company’s EBITDA was at Rs18.28bn, up by 14pc from the prior year quarter and rose by 17pc from the prior quarter.
JSPL registered an 8pc growth in steel production with 1.67mn mt in Q1 from the prior quarter, while sales rose by 12pc to 1.56mn mt.
In early June, Jindal Steel and Power (Mauritius) (JSPML), a subsidiary of Jindal Steel and Power Limited (JSPL) had accepted a binding offer from Templar investments to divest its entire stake in Oman asset, Jindal Shadeed Iron and Steel (JSIS Oman). The deal was approved by The Board of Directors in a meeting held on June 30, 2020. It would take place by the way of sale, partly by way of cash and partly by assumption of liabilities of JSMPL.
In Q1, Jindal Shadeed recorded a production of 0.36mn mt of steel, marginally down from 0.39mn mt in Q1FY21. Company’s EBITDA stood at $25.4mn, compared to the previous quarter’s EBITDA at $63.8mn.
($1= Rs 74.59)