Share of Jindal Steel & Power (JSPL) declined over 7 per cent after the company reported March quarter earnings. The share opened 2 per cent higher at Rs 466 against the previous close of Rs 456.70 on BSE. However, the stock shed all early gains amid profit booking.
The company reported a 23 times jump in net profit to Rs 1,900 crore in Q4. Profit in the year-ago period stood at Rs 82 crore. For FY21, the company reported a net profit of Rs 5,527 crore against reporting losses in the past 6 years.
The stock hit an intraday high of Rs 466 and an intraday low of Rs 419.10 so far. JSPL share is trading higher than 50 day, 100 day and 200 day moving averages. The stock has gained 351.34 per cent in one year and risen 58.47 per cent since the beginning of this year.
Revenue from operations rose 17 per cent to Rs 11,880.62 crore for the quarter ended March 2021 compared to Rs 6,795.18 crore in the year-ago period, backed by improved performance across steel, power and overseas mining operations.
During Q4 of FY21, JSPL reported the highest ever standalone steel production volumes (incl. pig iron) at 2.07 million tonnes (up 35 per cent YoY) and sales of 1.91 million tonnes (up 37 per cent YoY).
The company also informed that the core focus right now is to sweat out assets and make JSPL net debt free. It is all set to double its steelmaking capacity at Angul, Odisha to 12 MTPA (from 6 MTPA currently), raising its India crude steel capacity by 66 per cent to 15.9 MTPA.
"Strong operational performance coupled with better pricing environment have led to Consolidated EBITDA hitting a new record of INR 5,287 Cr. Higher EBITDA and declining interest costs have led to a net profit of Rs 1,901 crore," the company said.
"Structural changes in China to curb steel exports (removal of export rebate), strong focus on reducing carbon emissions and ongoing geopolitical tensions are likely to provide continued support to current steel upcycle, in our view," it added.
Recently, the company announced that it has made a prepayment of Rs 2,462 crore to its term lenders. It added that this announcement is in continuation of its long-stated financial strategy of debt reduction and building a robust balance sheet with an optimum capital mix.