JINDAL STEEL & POWER Announces Quarterly Results (3QFY19); Net Profit Down 124.0%

Mon, 4 Feb

JINDAL STEEL & POWER has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

JINDAL STEEL & POWER Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	69,926	99,823	95,656	-4.2%	36.8%
Other income	Rs m	10	9	148	1523.1%	1320.2%
Turnover	Rs m	69,936	99,832	95,804	-4.0%	37.0%
Expenses	Rs m	53,861	77,749	74,887	-3.7%	39.0%
Gross profit	Rs m	22,476	24,628	20,769	-15.7%	-7.6%
Depreciation	Rs m	9,632	10,314	10,357	0.4%	7.5%
Interest	Rs m	9,670	10,858	10,424	-4.0%	7.8%
Profit before tax	Rs m	3,184	3,466	136	-96.1%	-95.7%
Tax	Rs m	-457	674	1,008	49.6%
Profit after tax	Rs m	3,641	2,792	-872	-131.2%	-124.0%
Gross profit margin	%	32.1	24.7	21.7
Effective tax rate	%	-14.3	19.4	741.5
Net profit margin	%	5.2	2.8	-0.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 36.8% on a year-on-year (YoY) basis. The expenses were up by 39.0% YoY during the same period.
• The company's operating profit declined by 7.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 21.7% in 3QFY19 as against 32.1% in 3QFY18.
• Depreciation charges increased by 7.5% and finance costs increased by 7.8% YoY, respectively.
• Other income increased by 1320.2% YoY during the quarter.
• Net profit for the quarter declined by 124.0% YoY. Net profit margins during the quarter declined from 5.2% in 3QFY18 to -0.9% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 4.2% on a quarter-on-quarter (QoQ) basis. The expenses were down by 3.7% QoQ during the same period.
• The company's operating profit declined by 15.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 21.7% in 3QFY19 as against 24.7% in 2QFY18.
• Net profit for the quarter declined by 131.2% QoQ, while net profit margins declined from 2.8% in 2QFY18 to -0.9% in 3QFY19.

To see how JINDAL STEEL & POWER has performed over the last eight quarters, please visit here.

JINDAL STEEL & POWER Share Price Performance

Over the last one year, JINDAL STEEL & POWER share price has moved up from Rs 250.2 to Rs 129.2, registering a Loss of Rs 121.1 or around 48.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 10,343.7 (down 1.9%). Over the last one year it has moved down from 15,011.8 to 10,343.7, a gain of 4,668 points (down 31.1%).

Overall, the S&P BSE SENSEX is up 1.2% over the year.

Current Valuations

At the current price of Rs 129.2, the price to book value (P/BV) ratio of JINDAL STEEL & POWER stands at 0.4 times.