Jindal Steel & Power net loss widens in Q2FY16

Jindal Steel & Power (JSPL) declared its Q2FY16 results. The company's revenue increased by 6.35 per cent to Rs 4708 crore in Q2FY16 as compared to the previous quarter. Its total expenditure rose by 9.45 per cent to Rs 3731 crore in Q2FY16 on quarterly basis JSPL's total expenditure increased mainly due to a 4.6 per cent increment in raw material prices, 47.45 per cent increment in power & fuel expense during the quarter.

JSPL's EBITDA declined by 4.04 per cent to Rs 977 crore in Q2FY16 as compared to same period in previous financial year. The company's EBITDA margin contracted by 225 basis points to 20.74 per cent in Q2FY16 on quarterly basis. Its EBIT increased by 75.61 per cent to Rs 476 crore in Q2FY16 as depreciation expense reduced by 32.96 per cent to Rs 500 crore during the quarter. JSPL had exceptional loss of Rs 439 crore during Q2FY16 against zero in previous quarter and interest expense decreased by 10.21 per cent to Rs 765 crore in Q2FY16. The company reported net loss of Rs 618 crore in Q2FY16 against net loss of Rs 339 crore in Q1FY16.

On segmental revenue front, JSPL earned 68.29 per cent from Iron & Steel segment, 28.71 per cent from Power segment and remaining 3 per cent from Others segment during September 2015 quarter.

On yearly basis,JSPL's revenue decreased by 8.47 per cent to Rs 4708 crore in Q2FY16 as compared to same period in the previous financial year. The company's total expenditure increased by 6.51 per cent to Rs 3731 crore in Q2FY16 on yearly basis. Its EBITDA declined by 40.46 per cent to 977 crore in Q2FY16 as compared to same period in previous fiscal year. JSPL accounted net loss of Rs 618 crore in Q2FY16 while it had net profit of Rs 442 crore in Q2FY15.

JSPL's crude steel production stood at 1.03 million tonnes with a growth of 11 per cent in Q2FY16 on yearly basis.The company is targeting to produce over 5 million tonne of steel in FY16 which would be about 50 per cent higher than FY15.

JSPL's shareholding pattern indicates that FII holdings contracted by 259 basis points to 16.6 per cent and DII holdings also contracted by 21 basis points to 2.93 per cent during September 2015 quarter.The share price of the company decreased by 5.18 per cent on bourses in early trades and is trading at Rs 79.15 on intraday basis.

JSPL operating segments include Iron & Steel, and Power. The Company's products include rails, parallel flange beams and columns, plates and coils, angles and channels, Jindal Panther TMT rebars, wire rods, fabricated sections, Jindal speed floor, semi-finished products, power, minerals, Jindal Panther cement and sponge iron. It also supplies crane rails, which are used in electric overhead travelling (EOT) cranes, as well as in gantry crane operations.