Jindal Steel & Power rose 1.91% to Rs 258.65 on BSE after consolidated net profit rose 24.21% to Rs 561.51 crore on 7.90% increase in total income from operations to Rs 5377.37 crore in Q3 December 2013 over Q2 September 2013.
The company announced the results during trading hours today, 28 January 2014.
Meanwhile, the BSE Sensex fell 23.94 points, or 0.12%, to 20,683.51.
On BSE, 3.76 lakh shares were traded in the counter, compared with an average volume of 2.70 lakh shares in the past one quarter.
The stock hit a high of Rs 261 and a low of Rs 250.50 so far during the day. The stock hit a 52-week high of Rs 441.90 on 29 January 2013. The stock hit a 52-week low of Rs 181.55 on 2 August 2013.
The stock had underperformed the market over the past one month till 27 January 2014, sliding 3.20% compared with the Sensex's 2.29% fall. The scrip had, however, outperformed the market in past one quarter, rising 6.46% as against Sensex's 0.12% rise.
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The large-cap company has an equity capital of Rs 93.48 crore. Face value per share is Re 1.
On a consolidated basis, Jindal Steel & Power (JSPL) net profit fell 35.26% to Rs 561.51 crore on 12% increase in total income from operations to Rs 5377.37 crore in Q3 December 2013 over Q3 December 2012.
JSPL consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) levels in Q3 December 2013, increased to 31.6% compared to 29.2% in Q2 September 2013.
On a standalone basis, JSPL saw its volume grow by 4% over Q3 December 2012, while in value terms its turnover marginally dropped by 1% due to a changed product mix. Steel business's net price realization increased by 2.5% and 4% over Q3 December 2012 and Q2 September 2013 respectively. The Q3 December 2013, standalone PAT of JSPL increased by 42% compared to Q2 September 2013 but it fell short of Q3 December 2012 by 30% due to increased burden of interest and depreciation of the recently commissioned Angul Steel Plant.
The company said it maintained its tempo of growth in both exports and retail business. While exports in Q3 December 2013 grew by 9% in volume terms, retail business grew by a whopping 78% compared to the previous quarter. The company by the end of December 2013 has spread its distributor network to cover the entire country and had appointed 41 distributors and 875 dealers.
During Q3 December 2013, JSPL further commissioned new downstream units and introduced several new product lines. The company intends to take capital upgradation work at its Raigarh facility during Q4 March 2014. Production and dispatches from the Steel Melt Shop (SMS) and Plate Mill in Angul also witnessed major growth. The company's continued focus on capital efficiency programme saw impressive reduction in inventories which dropped to all time low and debtors decline by 20% compared to Q2 September 2013.
Jindal Power (JPL), JSPL Group's subsidiary, saw another quarter of high operational performance with PLF at 95.8% compared to 81% of Q3 December 2012. JPL's turnover and PAT increased by 9% and 4% respectively over Q3 December 2012. It also completed the second 600 megawatts (MW) unit of Tamnar Phase II and is all set to complete the third unit before March 31, 2014.
JSPL acquired a majority stake in NRE - Gujarat (GNRE), a company based in Australia producing Prime Quality Hard Coking coal, which will further enhance JSPL's input material security. Integration of GNRE however negatively impacted JSPL's PAT by Rs 68.69 crore.
JSPL Global Ventures with the exception of Gujarat NRE, performed well with revenue in Q3 December 2013, growing by 71% compared to Q3 December 2012. The company's Oman unit sold a record quantity of nearly 500,000 MT of HBI which was 48% higher than the volume sold in Q3 December 2012. Oman operations' turnover in Q3 December 2013 at US$ 171 million was 45% higher than Q3 December 2012. Production volume of Anthracite (ROM) in JSPL's South African mines increased by 21% on Q3 to Q3 basis.
JSPL said its Angul Steel project remains on track, although small delays were caused due to external interference with the execution of water supply works. 1st Phase of Angul Project will be fully ready before the end of Feb 2014. New Pelletization plant of 4.5 MPTA is progressing well and will go into commercial production by the end of February 2014.
JSPL is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure.
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