Jindal Steel & Power Ltd (JSPL) is expected to report a 40-60 per cent plunge in net profit for the March quarter on an 6-11 per cent drop in sales. Ebitda for the quarter may improve sequentially, on the back of improved realisations and volumes, partially offset by an uptick in coking coal cost and higher iron ore prices, analysts said.
Sales volume growth are likely to be constrained by truckers strike in Odisha leading to supply chain bottlenecks in case of iron ore, said ICICI Securities, as it expects overseas mining division performance to be constrained by lower coking coal prices.
This brokerage sees profit for JSPL falling 50 per cent YoY to Rs 967 crore from Rs 1,933 crore YoY. It sees revenues dropping 10.9 per cent YoY to Rs 12,777 crore from Rs 12,452 crore YoY.
Kotak Institutional Equities sees adjusted profit for JSPL at Rs 1,160 crore, down 40 per cent YoY. Sales are seen falling 9 per cent YoY to Rs 12,988 crore. Nuvama Institutional Equities pegs profit figure at Rs 1,126 crore, down 41.3 per cent YoY. Revenue for the quarter is seen falling 6.7 per cent YoY to Rs 13,381 crore.
"We expect JSPL's consolidated Ebitda to increase 3.2 per cent QoQ to Rs 12,918 per tonne owing to better realisation, offset
by higher iron ore and coking coal prices. The realisation is expected to improve 3 per cent QoQ to Rs 64,132 per tonne while volumes are likely to improve 4.2 per cent to 1.98 mt (volume hit due to logistics issues)," Nuvama said.
JSPL is expected to report 50.7 per cent YoY drop in consolidated profit at Rs 954 crore, Phillip Capital suggested in a note. It sees consolidated sales for the steel maker at Rs 13,106 crore, down 8.6 per cent YoY. On a standalone basis, Ebitda per tonne is seen falling 15.3 per cent YoY to Rs 1,151.50. Phillip Capital said steel business performance is likely to be stable but other mining assets are expected to see some decline in Ebitda. Volumes are seen improving 5 per cent sequentially.