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JSPL-FinancialResults2Q&1HFY18
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PRESSRELEASE
FINANCIALRESULTSFORSECONDQUARTER&HALFYEARFY2017-18
• ConsolidatedRevenuesup22%YoY• ConsolidatedEBITDAup62%YoY• JPLEBITDAup89%YoY• OmanEBITDAup316%YoY
JSPLStandalone2QFY18Performance(YoY):
§ Turnover:Rs.3,668Cr;increasedby5%§ EBITDA:Rs.784Cr;increasedby48%§ EBITDAMargin:21%§ PelletSales(External+Captive):1.63milliontonnes§ CrudeSteelProduction:0.89milliontonnes§ SteelSales:0.83milliontonnes
JSPLConsolidated2QFY18Performance(YoY):§ Turnover:Rs.6,125Cr;increasedby22%§ EBITDA:Rs.1,373Cr;increasedby62%§ EBITDAMargin:22%§ EBITDA–Oman:US$55mn§ CrudeSteelProduction:1.32milliontonnes§ SteelSales:1.27milliontonnes
JPL2QFY18Performance(YoY):§ Turnover:Rs.878Cr§ EBITDA:Rs.345Cr§ EBITDAMargin:39%§ CashProfit:Rs.187Cr
1. JSPLStandalonePerformance
ThehighlightoftheSecondQuarterwasthecommissioningofIndia’slargestBlastFurnace
attheCompany’sAngulplantandthestabilizationthereafter.
JSPLSteelproductionrose1%inthequarterendedSeptember’2017to0.89milliontonnes
JSPL-FinancialResults2Q&1HFY18
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(0.88million tonnes in2QFY17)while StandaloneSteel salesduring2QFY18 increased to
0.83milliontonnes(up3%YoY),despiteofitbeingamonsoonquarterandaleanseasonfor
LongProductSales.TheproductionrampupinAngulshallbemoreevidentoncetheBoFis
commissionedbeforetheendofthethirdquarter.SteelExportsin2QFY18recorded146%
growthoverthesameperiodlastyearandup83%QoQ.
WithSteelpricesfaringbetterthanlastyearandonbackoftheefficienciesbroughtinbythe
Company, evenafter offsetting for the increased rawmaterial costs, EBITDA for the same
periodincreasedby48%YoYtoRs.784Cr.EBITDAmargininthereportedquarterstoodat
21% as compared to 20% in 1QFY18 & 15% in 2QFY17. The Profit before Tax (PBT) in
2QFY18improved32%YoYwhileProfitafterTax(PAT)improved37%YoY.
InnovationatJSPLcontinuedduringthequarterwithitssteelmillsrollingoutnewsections
&gradesofcoils,headhardenedrailsandMLSMsectionstoimprovetheproductmix.
During 2QFY18, production of pellets decreased by 2% YoY to1.58 million tonnes. The
company achieved external sales of 0.86MTduring 2QFY18. The Company is on track to
installaFilterpressat theBarbilunit,which isexpectedto increaseproductionbyatleast
10%. The Barbil unit continued to remain the single largest exporter of pellets in the
country.
2. JSPLConsolidatedPerformance
JSPLproduced1.32milliontonnesontheConsolidatedlevel(up14%from1.16milliontonnes
in2QFY17)andsold1.27milliontonnes(up17%from1.08milliontonnesin2QFY17).
Steady rise inoperatingprofits across all businesses in the reportedquarterhave led to the
ConsolidatedEBITDAincreasingtoRs.1,373CrfromRs.848Cr(in2QFY17),up62%YoY.The
overallPBTandPATfor2QFY18alsoimprovedby32%and33%YoYrespectively.
Asofquarter-ended30thSeptember’17,JSPLconsolidatednetdebtwasmaintainedatthesame
level as last quarter. In continuation with its plans to strengthen the balance sheet, the
JSPL-FinancialResults2Q&1HFY18
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CompanydivesteditsOxygenPlantAssetsduringthereportedquarterandusedtheproceeds
to clear its entire pending domestic dues with all banks. The Company remains focused on
bringingdowndebtandisontracktofurtherimproveitsNetdebttoEBITDA.
3. JindalPowerLtd(JPL)
Power producers across most parts of India witnessed low coal availability in the second
quarter,which led to a fall in generation for JPL.TheCompanygenerated2,427units in the
reportedSeptemberquarterascomparedto3,186units in1QFY18(down24%).Accordingly,
thestationPLFalsodecreasedto32%comparedto37%in2QFY17.
The revenue for 2QFY18 increased by 20% compared to the same quarter in FY17. EBITDA
margin for the quarter ending September’17 was at 39% as compared to 25% in 2QFY17,
amountingtoRs.345Cr(ascomparedtoRs.182Crin2QFY17).JPLgeneratedcashprofitsof
Rs.187Crin2QFY18.
During thequarter,TamilNadu200MWMedium termPPAwas also extended forperiodof
anothertwoyears.
4. GlobalVentures
4.1. Oman:During thequarterended30thSeptember’2017, JindalShadeedproduced0.43milliontonnesofcrudesteel(asagainst0.28milliontonnesin2QFY17).Therebarmill
atOmanachievedproductionof0.22million tonnes thisquarter.OverallEBITDA for
2QFY18rose toUS$55mn(vs.US$32mn in1QFY18). JindalShadeed isnowamongst
thetopsteelsuppliersintheGCCmarkets.
4.2. Mozambique:MinesatMozambiqueproduced0.4milliontonnesofROMin2QFY18.
4.3. Australia:During2QFY18,DevelopmentworkwascarriedoutattheWongawillimines
withfull-fledgedminingoperationsexpectedtostartin3QFY18.
JSPL-FinancialResults2Q&1HFY18
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5. OverviewandOutlook
5.1. Steel-MarketOutlook
Theclosedownof facilities inChinacoupledwithothermeasurestocurbenvironmental
degradationhavehelpedsupportsteelpricesglobally.OverallSteelmarketshaveremained
robustwithWSAexpectingChina toshowasteeldemandgrowthof3%(not taking into
account demand generated due to closure of induction furnaces) and 2.8% for other
developingeconomiesinCY17.Theglobalsteeldemandisexpectedtofurtherstrengthen
withexpectationof4-5%growthindevelopingeconomies,specifically7.1%forIndiaand
flattishforChinainCY18.
Onbackof sustainedglobal steelpricesandrise indomesticdemandwith impetus from
government initiatives, the outlook for Steel markets in India looks particularly strong.
Demandforsteelseemstobegaininggroundwithmonsoonseasonendingandthehigh-
demandseasonsetting in.Longproductsdemand, specifically inRailsand Infrastructure
segments is already showing traction.Thegovernmenthasalreadybroughtouta tender
forbuyingupto0.7MTofRails,a firstofmany.Similarly, thegovernment issteadfaston
increasingthesteelintensityinIndiabypushingforsteelbridges&buildings.
TherecentlyannouncedgovernmentpackageofRs.2.11trilliontorecapitalizePSUbanks
isexpectedtofurtherboosttheinfrastructuregrowthinthecountry.Thecontinuoussteps
aimedatformalizationandbringingconvergenceinthesystemsstandstofurtherbenefit
theorganizedparticipantsintheindustry.
5.2. JSPLOutlook
5.2.1. Steel
WiththecommissioningofBlastFurnace,Angulvolumesaregraduallyrampingup.This
shall accelerate further with the commissioning of Basic Oxygen Furnace in 3QFY18.
Increase in volumes shall not only help the Company reduce costs further, improve
marginsbutalsohelptodeleveragefaster.
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5.2.2. Power
Powerdemandinthecountryremainsstatic,withindustrialproductiongrowthstillto
show any major upsurge. Though the uptick in industrial production, especially in
capitalgoodsduringthefestiveseason,ifsustained,couldbeaprecursor.Thepricesin
merchantmarketshavebeenbetter,butpowerproducersstillawaitmorevisibilityon
longtermPPAs.
Meanwhile coal prices have toned down from 2QFY18 levels and could now remain
rangeboundorcouldgolowerasCoalIndiarampsupproduction,thusincreasingJPL
profitability.TheCompany isalso lookingatwaystobestmonetizetheexcessCaptive
Powercapacity.
5.2.3. GlobalVentures
TheOmanplantcontinuestoshowsteadygrowthinprofitsandtheCompanywilllook
tosustain&growthemfurtherbyrollingmorerebarseverysequentialquarterhereon.
Overseasmines&mineralsbusiness is improving steadilywithmines inMozambique
and South Africa showing better performance sequentially while assets in Australia
shouldstartproducingagainin3QFY18.
JSPL-FinancialResults2Q&1HFY18
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STANDALONEFINANCIALRESULTS
YearonYear
Parameter(inCroresofINR) Quarter2 Change(%)2017-18 2016-17Turnover 3,668 3,488 +5%EBITDA 784 531 +48%EBITDA% 21% 15% Depreciation+Amortization 496 524 -5%Interest 578 654 -12%PBTBeforeExceptional (290) (647) +55%Exceptional 150 -- PBT (440) (647) +32%PAT (255) (407) +37%CashProfit 56 (123)
CONSOLIDATEDFINANCIALRESULTS
YearonYear
Parameter Quarter2 Change(%)2017-18 2016-17
Turnover 6,125 5,029 +22%EBITDA 1,373 848 +62%EBITDA% 22% 18%
Depreciation+Amortization 998 999 --Interest 927 872 +6%PBTBeforeExceptional (550) (1,021) +46%Exceptional 150 --
PBT (699) (1,021) +32%PAT (499) (747) +33%CashProfit 299 (22)
JSPL-FinancialResults2Q&1HFY18
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PRODUCTION(Consolidated)
YearonYear
Product(MillionTonnes)Quarter2
Change(%)2017-18 2016-17
Steel* 1.32 1.16 +14%Pellets 1.58 1.61 -2%
QuarteronQuarter
Product(MillionTonnes) Q2FY17-18 Q1FY17-18 Change(%)
Steel* 1.32 1.26 +5%Pellets 1.58 1.69 -6%
*onlySlab/Round/Bloom/BeamBlank(includesOman)
SALES(Consolidated)
YearonYear
Product(MillionTonnes)Quarter2
Change(%)2017-18 2016-17
SteelProducts* 1.27 1.08 +17%Pellets(Externalsales) 0.86 0.73 +18%
QuarteronQuarter
Product(MillionTonnes) Q2FY17-18 Q1FY17-18 Change(%)
SteelProducts* 1.27 1.15 +10%
Pellets(Externalsales) 0.86 0.61 +41%*Slabs/Bloom/Billets/Structurals& Rails/Universal Plate/Coil/Converted Angle/Channel/ Wire Rod /TMT/Fabricated Beams/Plates(IncludesOman)
JSPL-FinancialResults2Q&1HFY18
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JINDALPOWERLIMITED(JPL)
(ASUBSIDIARYOFJSPL)
YearonYear
Particulars(inCroresofINR) Quarter2 Change(%)2017-18 2016-17Turnover 878 734 +20%EBITDA 345 182 +89%EBITDA% 39% 25% Depreciation+Amortization 377 354 +7%Interest 227 179 +27%PBT (190) (246) +23%PAT (176) (205) +14%CashProfit 187 107 +74%Generation(millionunits) 2,427 2,313 +5%
QuarteronQuarter
Particulars(inCroresofINR) Q2FY17-18 Q1FY17-18 Change(%)
Turnover 878 1,079 -19%EBITDA 345 468 -26%EBITDA% 39% 43% Depreciation+Amortization 377 373 +1%Interest 227 227 --PBT (190) (62) -204%PAT (176) (32) -445%CashProfit 187 310 -40%Generation(millionunits) 2,427 3,186 -24%
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FORFURTHERINFORMATIONPLEASECONTACT: ForMediaInteraction: ForInvestorQueries:
1. Mr.GauravWahi
Head(CorporateCommunication)
Tel:+91-11-26739100 Mobile:+918826749938 Email:[email protected]
2. Ms.BhavnaSethiAVP(CorporateCommunication)
Tel:+91-11-26739100Mobile:+919560029642Email:[email protected]
1. Mr.NishantBaranwalHead(InvestorRelations)
Tel:+91-11-26739100Mobile:+918800690255Email:[email protected]
2. Ms.ShwetaBagaria
AM(InvestorRelations)
Tel:+91-124-6612073Mobile:+919599553717
Email:[email protected]
ForwardlookingandCautionaryStatements:-Certainstatementsinthisreleaseconcerningourfuturegrowthprospectsareforwardlookingstatements,whichinvolveanumberofrisks,anduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseinsuchforwardlookingstatements.Therisksanduncertaintiesrelatingtothesestatementsinclude,butarenotlimitedto, risks and uncertainties regarding fluctuations in earnings, our ability tomanage growth, intense competitionwithinsteelindustryincludingthosefactorswhichmayaffectourcostadvantage,timeandcostoverrunsonfixed– price, our ability tomanage our operations, reduced demand for steel , power etc., The Company does notundertaketoupdateanyforwardlookingstatementsthatmaybemadefromtimetotimebyoronbehalfoftheCompany. The numbers & statements in this release are provisional in nature and couldmaterially change infuture,basedonanyrestatementsorregroupingofitemsetc.
