Had it not been for the impairment (one-off) charge of Rs 253 crore on account of loss of fixed assets in an overseas subsidiary, Jindal Steel and Power (JSPL) would have emerged profitable in the March quarter (Q4) after nine consecutive quarters of losses. Excluding this one-off item, the reported net loss of Rs 98 crore would have been in positive territory. Notably, the outlook remains positive.
JSPL continues to see improving performance led by the core steel business. As the tide turned in favour of steel producers and realisations improved in the past one year, JSPL’s concentration on exports and pallet sales have further driven its performance. While sales volume came in at 0.92 million tonnes (mt), steel exports at 210,000 tonnes grew 300 per cent and pallet sales at 1.7 mt were up 33 per cent over a year. Its Oman operations, too, helped, as Ebitda (earnings before interest, depreciation, tax and amortisation) at $32 million grew 90 per cent over a year.
via Steel segment driving turnaround at JSPL | Business Standard Financial X-Ray
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