Sunday, November 7, 2021

JINDALSTEL Q2 PAT up 3 Times , Sales up 40%| Stock Outlook


Jindal Steel & Power Q2 PAT up 3-fold yoy at Rs2,584cr as share of exports in sales increases to 40%

Jindal Steel & Power Ltd reported 67.04% higher total revenues for the Sep-21 quarter on consolidated basis at Rs13,612cr

Jindal Steel & Power Ltd reported 67.04% higher total revenues for the Sep-21 quarter on consolidated basis at Rs13,612cr. The revenues were up 28.3% on a sequential basis compared to Rs10,610cr in the Jun-21 quarter.

Despite sluggish demand due to delayed monsoons, JSPL saw sales volumes increase by 32% on a sequential basis and 10% on yoy basis at a record 2.03 MT. Exports at 40% have hedged domestic risks of JSPL.

Even as strong steel prices helped, JSPL is under pressure due to coking coal prices rising above $400/ton.

Net profits for the Sep-21 quarter were up 208.9% on yoy basis at Rs2,584cr. On a sequential basis, the net profit was up just 1.61% compared to the Jun-21 quarter profits of Rs2,543cr.

EBITDA for the quarter was robust at Rs4,594cr. Net Debt to EBITDA stood at a comfortable 0.62X. This pertains to the continuing operations, excluding the gains from Jindal Power sold this fiscal.

Net margins at 18.99% in the Sep-21 quarter was higher than 10.27% in the Sep-20 yoy quarter but was lower than 23.97% in Jun-21 sequential quarter.

Stock Outlook 

Stock is still strong in long term and can test 468 - 492 in short term . 

Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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