Jindal Steel shares rise 3% ahead of Q3 earnings; here’s what to expect

Shares of Jindal Steel & Power rose nearly 3% today ahead of the metal firm's December quarter earnings set to be announced today. The large cap stock rose 2.88 per cent to Rs 590.55 against the previous close of Rs 574 on BSE. Market cap of Jindal Steel stood at Rs 60,236 crore. JSPL share has gained 1.44 per cent since the beginning of this year and risen 52.59 per cent in one year. Jindal Steel stock has gained after four days of consecutive fall.

In terms of technicals, the relative strength index (RSI) of Jindal Steel stands at 45.5, signaling the stock is neither oversold or overbought. The stock has a one-year beta of 1.4, indicating high volatility during the period. Jindal Steel stock is trading higher than the 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. 

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A total of 0.26 lakh shares of the firm changed hands, amounting to a turnover of Rs 1.50 crore

Market cap of the firm rose to Rs 60,042 crore on the BSE.

Jindal Steel is likely to report a steep fall in profit for the December quarter. 

Centrum Broking sees JSPL reporting a 45.2 per cent YoY fall in profit at Rs 885.20 crore compared with Rs 1,616.70 crore in the year-ago quarter. Sales for the steel maker is expected to rise 4.9 per cent YoY to Rs 13,134.30 crore from Rs 12,524.90 crore. EBITDA is seen falling 35.1 per cent YoY to Rs 2,149.60 crore from Rs 3,310.20 crore.

Elara Securities expects profit falling 56.10 per cent YoY to Rs 710.45 crore on a 2.2 per cent rise in sales at Rs 12,796 crore. Elara said that while there were attempts to increase prices by steel industry at the start of December quarter, they were followed by rollbacks. Steel prices remained under pressure for the quarter, with a fall of 17 per cent YoY and 5 per cent QoQ in flat products. Prices of long and semi-finished products were up 5 per cent YoY and 3 per cent YoY, but fell 2 per cent QoQ and 6 per cent QoQ, respectively, it noted.

In the second quarter of the current fiscal, the company’s consolidated profit for the quarter was 92% lower year-on-year at Rs 199.71 crore against Rs 2,584 crore in the September quarter a year ago. Revenue remained flat at Rs 13,521 crore in Q2.

Earnings before interest, tax, depreciation and amortisation (EBITDA) crashed 58% year-on-year to Rs 1,931 crore. This included a one-off foreign exchange gain of Rs 473 crore.Keywords:
 

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