JSPL Reports INR 4524 Crore EBIDTA for Q1 of 2021-22
Despite adverse market conditions due to second wave of COVID-19 and ensuing lockdowns, Jindal Steel & Power Limited has been able to post resilient set of numbers in Q1 of 2021-22. The company has reported a record first quarter steel production of 2.01 million tonnes. While domestic demand was subdued during the quarter, buoyant export markets continued to provide support with exports accounting for 34% in 1QFY22. Share of exports would have been higher in the absence of logistical challenges posed by unfavourable weather leading to congestion at ports. Volume growth coupled with upward momentum in steel prices resulted in standalone net revenues rising by 65% YoY to INR 10,385 crore. However, during the quarter long steel prices were relatively subdued compared to flat steel prices, which were also boosted by buoyant export markets. The quarter also witnessed sharp rise in input costs, impact of which was compounded by exhaustion of low cost iron ore inventory.
During Q1 of 2021-22, JSPL Standalone reported steel production (incl. pig iron) of 2.01 million tonnes, up 20% YoY, a record first quarter production. While the domestic demand was severely impacted by the second wave of COVID-19, lucrative export markets aided company's effort in improving sales compared to previous year (1.61million tonne, +3% YoY). Share of exports increased to 34% in Q1 of FY22 compared to 27% in the prior quarter. Higher sales volumes and uptick in the steel prices resulted in revenues rising by 65% YoY to INR 10,385 crore. EBITDA also surged to INR 4,524 crore, partially offset by higher costs. Strong operating profit and declining finance costs have resulted in JSPL standalone posting a quarterly profit of INR 2,661 crore.
Pellet production in 1QFY22 increased to 2.16 million tonne (up 6 % QoQ). External sales of pellets also increased to 0.40 million tonnes (up 39% QoQ) due to higher production of pellets as steel production was broadly stable QoQ.