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JSPL slips into red, posts net loss of Rs 87 crore in Q1FY20

BusinessToday.In     August 14, 2019

Jindal Steel and Power (JSPL) reported a consolidated net loss of Rs 87.40 crore during the first quarter ended June 30, 2019. The steel and energy company had reported net profit of Rs 109.89 crore during the corresponding quarter last year.

During the quarter under review, JSPL saw its consolidated revenue grow less than 3 per cent to Rs 9,945.58 crore from Rs 9,665.35 crore in the year-ago period. During Q1 FY20, the company registered an increase of 12 per cent in sales of steel and related products at 1.92 million tonnes. JSPL sold 1.84 million tonnes of crude steel during the June quarter of current fiscal, up 14 per cent from 1.61 million tonnes during same quarter in the previous fiscal.

In operating terms, JSPL reported Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of Rs 2,173 crore during the June quarter, 5 per cent lower than Rs 2,277 crore reported during the year-ago period. EBITDA margin declined to 22 per cent from 24 per cent posted during the first quarter of previous fiscal.

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The deferred tax during the June quarter of FY20 was Rs 97.86 crore, as compared to Rs 153.6 crore during the previous fiscal.

The board of JSPL also approved the appointment of VR Sharma as an additional director of the company with immediate effect up to the ensuing AGM of the company. He has also been appointed as Managing Director of JSPL for a period of three year, effective from August 14, 2019.

The board also discussed issuance of further securities for an amount not exceeding Rs 5,000 crore. The proposal is subject to shareholders' approval. The company will hold its 40th Annual General Meeting (AGM) on September 27.

Shares of JSPL have risen 11.29 per cent intraday to Rs 105.45 on BSE. Paring some of early gains, JSPL share price closed the day's trade at Rs 103.30, up 9.02 per cent.

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