JSPL Q2 profit plunges 96% YoY to Rs 15 crore

JSPL posted a sharp fall in standalone profit to Rs 15 crore in the second quarter ended September 30, down 96% from Rs 383 crore it had reported in the same period last year.

The company's turnover was lower at Rs 6,573 crore in Q2FY20 against Rs 6,849 crore in Q2FY19. Earnings before interest tax depreciation and amortisation (EBITDA) was at Rs 1,255 crore, while JSPL's EBITDA margin stood at 19% during the quarter.

The company said it benefitted from its diversified and differentiated product profile. "Though the quarter was due to be the weakest given the monsoon season,
further weakened by the muted economic growth in the country; products like rails, structuresas,
plates and other value added products helped the company partially offset the steep fall in prices and profitability during the quarter under review," an official statement said.

The company reported a 16% rise in production YoY for to 1.58 million tonnes (1.36 million tonnes in Q2FY19) and sales of 1.46 million tonne during Q2FY19, up 10% YoY, led by ramp up in production at Angul, Odisha, despite it being traditionally the weakest quarter due to lack of construction activity during rains. Crude steel production on standalone basis rose to 1.44
million tonnes (up 11% YoY) while sales were at 1.33 million tonnes (up 5% YoY).

Net debt for the quarter ended September 30 was reported at Rs 36,501 crore.

On outlook, JSPL said, being primarily a long steel producer, it is expected to be a beneficiary of the infrastructure spend and the increased construction activity in the near term. Moreover, value added products like rails, value added plates and structures are expected to continue to provide stable topline and profitability.