Update on Jindal Steel and Power Ltd by Motilal Oswal
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Reported weak numbers for 4QFY22 led by lower ASP
Consolidated Results
* JSPL’s consolidated revenue/EBITDA/APAT at INR143b/INR31b/INR20b were +21%/-42%/-34% YoY and +14%/-7%/+5% QoQ, respectively.
* The revenue miss of 4% translated into a 20% miss on EBITDA. Other expenditure at INR43b was significantly ahead of our estimate of INR24b that was offset by lower RM costs.
* ND reduced by INR21b in 4QFY22 to INR89b; this was excluding the receipt of INR30b from the divestment of JPL from the promoters. The money was received on 30th May’22.
* Management declared a dividend of INR2/share in addition to the interim dividend of INR1/share.
* The company has taken an impairment of INR4.1b for various assets, including impairment of blast furnace parts lying at Patratu (INR2.5b).
Standalone Results
* JSPL’s standalone revenue/EBITDA/APAT at INR138b/INR28b/INR15b were +33%/-42%/-45% YoY and +16%/-11%/-11% QoQ, respectively.
* Steel sales volume stood at 2.08mt (+9% YoY/+14% QoQ) in line with our estimate of 2.04mt.
* ASP at INR66,494/t (+22% YoY/+1% QoQ) was below our estimate of INR70,762/t, which resulted in a lower-than-expected revenue and EBITDA.
* EBITDA/t for 4QFY22 stood at INR13,589 (-47% YoY /-22% QoQ) v/s our estimate of INR16,583/t.
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