Earnings Outlook
High realisations to boost Jindal Steel & Power QoQ
This story was originally published at 23:04 IST on 22 July 2024
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By Sayantan Sarkar
NEW DELHI – Jindal Steel & Power Ltd is likely to report robust financial results for Apr-Jun, compared with the previous quarter, on higher realisations and lower coking coal prices, analysts said. However, net profit is expected to significantly fall compared with the year-ago period.
The company is likely to report a consolidated net profit of 12.08 bln rupees, up 29% on quarter, according to the average of estimates from seven brokerage firms. The company's net profit is expected to fall as much as 28% on a year-on-year basis. Among the estimates, the lowest and highest projections are 10.38 bln rupees and 14.00 bln rupees, respectively.
The consolidated revenue is likely to rise 4% on year and fall 3% sequentially to 131.30 bln rupees for the quarter ended June. The highest and lowest projections are 139.28 bln rupees and 123.50 bln rupees, respectively.
The earnings before interest, taxes, depreciation, and amortisation for the quarter are expected to be 27.22 bln rupees, according to the average of estimates from six brokerages.
The company is scheduled to declare its earnings on Wednesday.
According to Nuvama Wealth Management, the company's EBITDA is likely to increase 6% sequentially on the back of improved realisation and lower coking coal prices in the quarter ended June. However, the firm expects volumes to soften by 1.5% on-quarter.
In its pre-earnings report, Kotak Institutional Equities said Jindal Steel & Power is likely to report a 6.4% improvement in volumes for the quarter on a year-on-year basis, although it also represents a 2.6% decrease from the previous quarter. Prabhudas Lilladher estimated a 5% sequential decline in sales volumes to 1.92 mln tn as demand remained muted for the quarter.
Investors will monitor the company's commentary on coking coal prices and measures to mitigate the recent increase in its prices, including captive mines in coal and other raw materials, and guidance on timelines for capital expenditure. Today, shares of Jindal Steel & Power closed 0.7% higher at 952.60 rupees on the National Stock Exchange.
Following are the consolidated earnings estimates for Jindal Steel & Power, in mln rupees, collated from seven brokerages:
| Brokerage name | Net sales | Net profit | EBITDA |
|---|---|---|---|
| Anand Rathi Share and Stock Brokers Ltd | 130,789 | 10,375 | - |
| Elara Securities (India) Pvt Ltd | 123,499 | 11,524 | 25,350 |
| IDBI Capital Market Services Ltd | 131,548 | 11,241 | 27,773 |
| Kotak Institutional Equities | 139,277 | 13,198 | 26,616 |
| Motilal Oswal Financial Services Ltd | 137,000 | 14,000 | 31,000 |
| Nuvama Wealth Management Ltd | 121,000 | 12,200 | 26,300 |
| Prabhudas Lilladher Pvt Ltd | 136,000 | 12,000 | 26,300 |
| Average | 131,302 | 12,077 | 27,223 |
End
Edited by Aditya Sakorkar
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