JSPL Q2 Results Review - Margin Weak; Outlook Muted: IDBI Capital
The government imposition of hefty export duties on steel has led decline in realizations for steel companies.
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IDBI Capital Report
Jindal Steel and Power Ltd.'s Q2 FY23 profitability was below our forecast although sales was higher than our expectations (up 6%). Its sales volumes grew by 16% QoQ to 2.01 million tonnes.
However, Ebitda fell by 44% QoQ to Rs 19 billion on account of higher raw material costs, rise in thermal coal prices and other expenses.
Nevertheless, JSPL’s net debt fell by Rs 7 billion QoQ to Rs 70 billion. Mozambique operations Ebitda fell to $15 million in Q2 FY23 (down 66% QoQ), driven by fall in coking coal prices.
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