JSPL back in profits - The Journey has just begun

Steel News - Published on Thu, 10 May 2018

Image Source: Odisha Time

JSPL Standalone Steel production rose 38% in the reported quarter to 1.26 million tonnes (0.91 million tonnes in 4QFY17) while Standalone Steel sales during 4QFY18 increased to 1.18 million tonnes (up 29% YoY). The rise in sales realizations was partly offset by the corresponding increase in raw material prices with EBITDA in 4QFY18 increasing by 66% YoY to Rs. 1,519 Cr. The Company reported an expansion in the EBITDA margins, at 26% as compared to the last quarter (22%). The quarter marked JSPL’s turnaround back to profits after 13 successive quarters, reporting a Profit After Tax at INR 145 crore as compared to a Loss of INR 74 crore last quarter and a loss of INR 116 crore last year.

During 4QFY18, production of pellets increased by 15% YoY to 1.84 million tonnes and the company achieved external sales of pellets of 0.74 MT during 4QFY18.

The quarter also saw JSPL coming out with its first ever equity raise in the markets, garnering INR 1,200 Cr through Qualified Institutional Placement. The issuance was well over-subscribed by marquee investors, both foreign & domestic.

On a full year basis, JSPL standalone Sales turnover in FY18 rose by 13% while EBITDA at INR 3,973 crore increased by 37% compared to the previous year. The EBITDA margins came at 23% as compared to 19% in the previous year, primarily supported by better than expected steel sales realizations.

JSPL Consolidated Performance
The Company achieved a Consolidated Steel Sales of 5.44 million tonnes in FY18, up by 17% Y-o-Y and production of 5.70 million tonnes (Vs. 4.80 million tonnes in FY17). JSPL achieved its highest ever-annual revenue of INR 27,841 crore, which is 23% higher than previous year. The aggregate EBITDA rose by 37% compared to previous year FY17. The overall EBITDA for FY18 stood at 23% vs. 21% for FY17, supported by better operating profits across all its Steel & Power business globally. As of year ended 31st March’2018, JSPL consolidated net debt was at INR 42,000 Cr levels.