Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
1QFY12 results
JSPL’s 1Q consol net profit fell 3% YoY and was 6% below estimates. The
profit miss was due to lower steel volumes and higher stand-alone interest
costs versus expectations. Jindal Power net profit fell 19% YoY due to lower
realizations but was as per expectations. JSPL is on track to fully commission
the 1,350MW power capacity by end-FY12 but the Angul steel plant is seeing
delays. Start of production in Bolivia is a positive. We will re-visit estimates
soon factoring in Bolivia iron ore sales, Angul plant delays and lower
utilization of captive power units. Maintain O-PF.
Stand-alone net profit 16% below estimates
Stand-alone EBITDA at Rs9.6bn grew 22% YoY in 1Q but was 6% below
estimates. The EBITDA miss was due to lower steel volumes, which missed our
estimates by 4% while growing 13% YoY. Management commented that
inventories have risen 22% QoQ, which is a bit of concern. ASPs and costs were
inline with estimates. Interest costs rose a sharp 25% QoQ due to commissioning
of 3 units of the 1350MW captive power capacity. As a result, standalone net
profit missed estimates by 16% - higher than EBITDA miss of 6%.
Power business performance was inline
Jindal Power reported a net profit of Rs4.5bn – down 19% YoY but was inline with
estimates. The YoY profit drop was mainly due to lower power tariffs. Average
tariff in 1Q was Rs3.92/unit while PLF was 99%. Three units of the 1350MW
capacity are commissioned. These units operated at 50% PLF in 1Q and did not
sell much power externally post captive consumption. The 1350MW captive power
capacity will be fully commissioned by end-FY12. JSPL has received environment
clearance for its 2400MW Tamnar – II project and will start construction after
meeting some pre-conditions in 30-40 days.
Steel project delayed; sales to start in Bolivia in 2Q, which is positive
JSPL’s Angul steel project is delayed further. Management now expects to
commission the plate mill by FY12-end, the DRI unit by early-FY13 and the steel
melting shop by June-12 (all by end-FY12 previously). Our estimates assume full
commissioning by mid-FY13 but we believe that it can be delayed further. A key
positive is that iron ore mining has finally started in Bolivia and JSPL is targeting
to start shipments in 2Q. Shadeed, too, has started contributing to consol profits
and has registered a net profit of Rs370m in 1Q.
Maintain O-PF; will review estimates shortly
We will review our estimates shortly after receiving some clarifications from
management. We plan to incorporate Bolivia in estimates along with some
delays in the Angul plant and lower utilization of captive power units. Till
then, we maintain O-PF.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
1QFY12 results
JSPL’s 1Q consol net profit fell 3% YoY and was 6% below estimates. The
profit miss was due to lower steel volumes and higher stand-alone interest
costs versus expectations. Jindal Power net profit fell 19% YoY due to lower
realizations but was as per expectations. JSPL is on track to fully commission
the 1,350MW power capacity by end-FY12 but the Angul steel plant is seeing
delays. Start of production in Bolivia is a positive. We will re-visit estimates
soon factoring in Bolivia iron ore sales, Angul plant delays and lower
utilization of captive power units. Maintain O-PF.
Stand-alone net profit 16% below estimates
Stand-alone EBITDA at Rs9.6bn grew 22% YoY in 1Q but was 6% below
estimates. The EBITDA miss was due to lower steel volumes, which missed our
estimates by 4% while growing 13% YoY. Management commented that
inventories have risen 22% QoQ, which is a bit of concern. ASPs and costs were
inline with estimates. Interest costs rose a sharp 25% QoQ due to commissioning
of 3 units of the 1350MW captive power capacity. As a result, standalone net
profit missed estimates by 16% - higher than EBITDA miss of 6%.
Power business performance was inline
Jindal Power reported a net profit of Rs4.5bn – down 19% YoY but was inline with
estimates. The YoY profit drop was mainly due to lower power tariffs. Average
tariff in 1Q was Rs3.92/unit while PLF was 99%. Three units of the 1350MW
capacity are commissioned. These units operated at 50% PLF in 1Q and did not
sell much power externally post captive consumption. The 1350MW captive power
capacity will be fully commissioned by end-FY12. JSPL has received environment
clearance for its 2400MW Tamnar – II project and will start construction after
meeting some pre-conditions in 30-40 days.
Steel project delayed; sales to start in Bolivia in 2Q, which is positive
JSPL’s Angul steel project is delayed further. Management now expects to
commission the plate mill by FY12-end, the DRI unit by early-FY13 and the steel
melting shop by June-12 (all by end-FY12 previously). Our estimates assume full
commissioning by mid-FY13 but we believe that it can be delayed further. A key
positive is that iron ore mining has finally started in Bolivia and JSPL is targeting
to start shipments in 2Q. Shadeed, too, has started contributing to consol profits
and has registered a net profit of Rs370m in 1Q.
Maintain O-PF; will review estimates shortly
We will review our estimates shortly after receiving some clarifications from
management. We plan to incorporate Bolivia in estimates along with some
delays in the Angul plant and lower utilization of captive power units. Till
then, we maintain O-PF.
No comments:
Post a Comment