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4QFY11 result
JSPL’s 4Q performance was broadly in line with our estimates. The
standalone numbers got a boost due to higher dividend income from
Jindal Power. Jindal Power’s 4Q financials were in line with estimates
with profits and average tariff declining 5% YoY and 20% YoY
respectively. We will be having a relook at our earnings estimates post
the earnings concall on 25th April where we will seek more information
regarding the new commissioning schedules for both power and steel
expansion projects.
4Q standalone profit 2% above estimates
JSPL’s standalone 4Q net profit of Rs6.5bn, up 18% YoY, was 2% above
estimates mainly due to higher other income (dividend from Jindal Power).
Ebitda margins, though flat QoQ, were 210 bps below estimates due to higher
than expected raw material and manufacturing costs. This led to 5% miss at
the Ebitda level in spite of inline revenues.
Jindal Power – in line performance
JSPL’s 96.5% sub, Jindal Power reported net profit of Rs4.9bn, down 5% YoY
which was in line with our estimates. The average tariff during the quarter
was Rs4.13/kWh (estimated) and Rs4.22/kWh for the full year FY11. Tamnar
–I power project reported the PLF of 101% during the quarter and 98.4% for
the full year.
Delay in captive power projects and Tamnar II
JSPL has commissioned two units of 135MW at Raigarh and one unit of
135MW at Anugul. The company is yet to commission two more units at
Raigarh and five more at Angul. The commissioning schedule has been
disappointing so far and we will have to build is more delays for the balance
units in our estimates. 2.4GW Tamnar II project (developed by Jindal Power)
is also likely to be delayed given that the work at site is yet to start as the
company is waiting for a final go-ahead from MoEF.
FY12-13 earnings likely to be cut
We will seek more information regarding the commissioning schedule/reasons
for delays of the captive power projects (@ Raigarh and Angul) and Tamnar II
in the earnings call scheduled for 25th April. The steel earnings (FY13) are
also expected to be revised downwards given the delays in Angul expansion
project. We will have a relook at our earnings estimates for the company post
the call but FY12-13 earnings are most likely to be cut.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
4QFY11 result
JSPL’s 4Q performance was broadly in line with our estimates. The
standalone numbers got a boost due to higher dividend income from
Jindal Power. Jindal Power’s 4Q financials were in line with estimates
with profits and average tariff declining 5% YoY and 20% YoY
respectively. We will be having a relook at our earnings estimates post
the earnings concall on 25th April where we will seek more information
regarding the new commissioning schedules for both power and steel
expansion projects.
4Q standalone profit 2% above estimates
JSPL’s standalone 4Q net profit of Rs6.5bn, up 18% YoY, was 2% above
estimates mainly due to higher other income (dividend from Jindal Power).
Ebitda margins, though flat QoQ, were 210 bps below estimates due to higher
than expected raw material and manufacturing costs. This led to 5% miss at
the Ebitda level in spite of inline revenues.
Jindal Power – in line performance
JSPL’s 96.5% sub, Jindal Power reported net profit of Rs4.9bn, down 5% YoY
which was in line with our estimates. The average tariff during the quarter
was Rs4.13/kWh (estimated) and Rs4.22/kWh for the full year FY11. Tamnar
–I power project reported the PLF of 101% during the quarter and 98.4% for
the full year.
Delay in captive power projects and Tamnar II
JSPL has commissioned two units of 135MW at Raigarh and one unit of
135MW at Anugul. The company is yet to commission two more units at
Raigarh and five more at Angul. The commissioning schedule has been
disappointing so far and we will have to build is more delays for the balance
units in our estimates. 2.4GW Tamnar II project (developed by Jindal Power)
is also likely to be delayed given that the work at site is yet to start as the
company is waiting for a final go-ahead from MoEF.
FY12-13 earnings likely to be cut
We will seek more information regarding the commissioning schedule/reasons
for delays of the captive power projects (@ Raigarh and Angul) and Tamnar II
in the earnings call scheduled for 25th April. The steel earnings (FY13) are
also expected to be revised downwards given the delays in Angul expansion
project. We will have a relook at our earnings estimates for the company post
the call but FY12-13 earnings are most likely to be cut.
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