JSPL stock factoring in improving prospects

THE COMPASS DEVANGSHU DATTA Jindal Steel & Power's (JSPL's) Q4FY24 results were in line with consensus.

The reported revenue of 13,500 crore (down 1.5 per cent year-on-year and up 15 per cent quarter-on-quarter) in Q4FY24 beat estimates.

The Average Selling Price of steel stood at ₹67,099 per tonne (flat Y-o-Y and up 4 per cent Q-oQ), which was better than expectations.

The Ebitda stood at $2,400 crore (up 12 per cent Y-o-Y, down 14 per cent Q-o-Q), which was lower than estimates, due to higher costs. The Ebitda per tonne stood at 12,162 (up 12 per cent Yo-Y, down 14 per cent Q-o-Q), which was also below estimates.

The coal costs rose by $10-20 per tonne Q-o-Q. The adjusted profit after tax (APAT) stood at ₹900 crore (up 52 per cent Y-o-Y but down 51 per cent Q-o-Q). The production volume rose 2 per cent Y-o-Y and 6 per cent Q-o-Q to 2.05 million tonnes (MT), while the sales volume was at 2.01 MT (down 1 per cent Y-o-Y, up 11 per cent Q-o-Q). Exports were flat Yo-Y at 11 per cent of the total revenue in Q4FY24.