- Consolidated PAT (before exceptional items) of INR 892 Cr
- Consolidated Reported PAT of INR 219 Cr
- Standalone PAT (before exceptional items) of INR 935 Cr
- Standalone Reported loss after tax of INR 473 Cr
- Sales Volume Growth of 16% QoQ
- Consolidated Adjusted EBITDA of INR 1,519 Cr
- Standalone Adjusted EBITDA of INR 1,426 Cr
- Consolidated Net Debt reduced to INR 7,054 Cr in 2QFY23 (down INR 673 Cr QoQ)
- JSP has prepaid its entire overseas long term debt
JSP Consolidated Performance
2QFY23 Highlights
- Gross Revenue* INR 15,534 Cr
- Net Revenue INR 13,521 Cr
- Adjusted EBITDA: INR 1,519 Cr **
- PAT (before exceptional) INR 892 Cr
- Reported PAT INR 219 Cr
1HFY23 Highlights
- Gross Revenue* INR 30,272 Cr
- Net Revenue INR 26,567 Cr
- Adjusted EBITDA: INR 4,472 Cr ***
- PAT (before exceptional) INR 2,821 Cr
- Reported PAT INR 2,209 Cr
*Incl. GST; ** Adjusted for one-off FX gain of INR412Cr in 2QFY23; *** Adjusted for one-off FX gain of INR 498 Cr in 1HFY23
JSP Standalone Performance
2QFY23 Highlights
- Gross Revenue* INR 15,118 Cr
- Net Revenue INR 13,107 Cr
- Adjusted EBITDA: INR 1,426 Cr **
- PAT (before exceptional) INR 935 Cr
- Reported loss after tax INR 473 Cr
- Steel* production: 1.82 million tonnes
- Steel* sales: 2.01 million tonnes
1HFY23 Highlights
- Gross Revenue* INR 29,659 Cr
- Net Revenue INR 25,956 Cr
- Adjusted EBITDA: INR 4,250 Cr ***
- PAT (before exceptional) INR 3,007 Cr
- Reported PAT INR 6,150 Cr
- Steel* production: 3.81 million tonnes
- Steel* sales: 3.75 million tonnes
*Including pig iron; *Incl. GST; ** Adjusted for one-off FX gain of INR412Cr in 2QFY23; *** Adjusted for one-off FX gain of INR 498 Cr in 1HFY23
Industry update
The quarter saw an improvement in steel consumption due to an improved domestic demand offset partially by falling export volumes on the back of export duty. India's crude steel production remained flattish at 30 Mt attributed largely to maintenance shutdowns at domestic steel producers. India's steel Consumption stood at 27.9 Mt (up 13% y-o-y and 2% q-o-q). Exports for the quarter were at 1.4 Mt (down 36% Q-o-Q).
In terms of pricing, both longs and flats showed significant price erosion during the quarter. While on the raw material front, recessionary concerns and lower demand forecast impacted the commodity prices globally, the benefit of the low raw material prices was not fully reflected in the reported quarter.
Standalone
On the back strong domestic demand in 2QFY23, JSP has reported sales of 2.01 mt (up 16% higher Q-o-Q). The Company reported production of 1.82 Mt during the quarter, which was 9% lower Q-o-Q, largely due to a maintenance shutdown at the Raigarh Plant. The export volumes accounted for 11% of sales in 2QFY23 (vs. 26% in 1QFY23) as a consequence of export duty and weakened global demand.
JSP's 2QFY23 gross revenues came at INR 15,118 Cr (up 4% Q-o-Q) on the back of higher volumes but lower realizations. Lower coking coal and iron ore prices offset by high thermal coal prices, inventory valuation losses, resulted in Adjusted EBITDA of INR 1,426 Cr (down 50% Q-o-Q). The adjustments were on account of FX gain of INR 412 Cr. EBITDA without adjusting for FX gain stood at INR 1,838 Cr. JSP reported Profit after tax (before exceptional) for 2QFY23 at INR 935 Cr (down 55% Q-o-Q). Provisions of INR 1,664 Cr for accumulated interest & forex gains on loan between JSP and its wholly owned subsidiary, JSPML have been made during the quarter. Post these exceptional items, reported net loss after tax was INR 473 Cr.
Pellet production of 1.79mt remained flat Y-o-Y (down 7% Q-o-Q). External sales for pellets rose to 109KT (vs 27KT in 1QFY23) on back of domestic demand uptick.
Global Ventures
a) Mozambique: Chirodzi mine produced 1.16 MT ROM (+25% Q-o-Q) in 2QFY23. However, coking coal sales were a bit lower since last quarter at 195 KT. Mozambique operations reported EBITDA of US$15mn for 2QFY23 (down 66% Q-o-Q), driven by fall in coking coal prices.
b) South Africa: Kiepersol mine took an operational shutdown during 2QFY23 and hence reported lower production & sales volumes for the reported quarter. Production stood at 81 KT ROM (-45% Q-o-Q) while sales came at 31KT (down 58% Q-o-Q). The mine reported EBITDA of US$13 mn for the quarter.
c) Australia: During 2QFY23, Russel Vale mine has been slow on ramp up and reported 150 KT ROM (up 9% Q-o-Q) production. Dispatches remained flat at 79KT. The mine reported operational EBITDA of US$ 8mn for the quarter. Wongawilli colliery continues to remain under care & maintenance.
Consolidated
JSP 2QFY23 Consolidated gross Revenues rose 5% Q-o-Q to INR 15,534 Cr, largely on improvement in standalone revenues. Adjusted EBITDA of INR 1,519 Cr** was lower by 49% Q-o-Q. 2QFY23 Profit after tax (before exceptional) declined by 54% Q-o-Q to INR 892 Cr. Reported Profit after tax (PAT) stood at INR 219 Cr.
On the treasury front, JSP has prepaid its entire overseas long term debt & even refinanced a portion of its standalone debt. JSP's consolidated net debt further reduced to INR 7,054 Cr on the back of these repayments as well as working capital release. Net Debt to EBITDA (LTM) as on 30th Sept is 0.62x.
** Adjusted for one-off FX gain of Standalone of INR 412Cr
| PRODUCT (Million Tonnes) | Q2 FY 23 | Q1 FY 23 | Q2 FY 22 | 1H FY 23 | 1H FY 22 |
|---|---|---|---|---|---|
| Steel* | 1.82 | 1.99 | 1.93 | 3.81 | 3.94 |
| Pellets | 1.79 | 1.92 | 1.80 | 3.71 | 3.96 |
| PRODUCT (Million Tonnes) | Q2 FY 23 | Q1 FY 23 | Q2 FY 22 | 1H FY 23 | 1H FY 22 |
|---|---|---|---|---|---|
| Steel* | 2.01 | 1.74 | 2.13 | 3.75 | 3.74 |
| Pellets (External Sales) | 0.11 | 0.03 | 0.20 | 0.14 | 0.60 |
* Including Pig Iron
| PARAMETER | Q2 FY 23 | Q1 FY 23 | Q2 FY 22 | 1H FY 23 | 1H FY 22 |
|---|---|---|---|---|---|
| Gross Revenue* | 15,118 | 14,541 | 14,550 | 29,659 | 26,024 |
| Adjusted EBITDA** | 1,426 | 2,824 | 4,512 | 4,250 | 8,947 |
| Depreciation + Amortization | 544 | 540 | 562 | 1,084 | 1,118 |
| Interest | 320 | 258 | 350 | 578 | 794 |
| PBT (before exceptional) | 982 | 2,534 | 3,626 | 3,516 | 7,180 |
| Exceptional Gain/(Loss) | (1,664) | 5,805 | – | 4,141 | – |
| PAT (before exceptional) | 935 | 2,072 | 2,711 | 3,007 | 5,372 |
| Reported PAT/(loss) | (473) | 6,623 | 2,711 | 6,150 | 5,372 |
* Incl. GST; ** Adjusted for one-off FX gain of INR412Cr in 2QFY23, INR 7Cr in Q2FY22, INR 898 Cr in 1HFY23, INR 95 Cr in 1HFY22
| PARAMETER | Q2 FY 23 | Q1 FY 23 | Q2 FY 22 | 1H FY 23 | 1H FY 22 |
|---|---|---|---|---|---|
| Gross Revenue* | 15,534 | 14,738 | 14,902 | 30,272 | 26,600 |
| Adjusted EBITDA** | 1,519 | 2,952 | 4,587 | 4,472 | 9,038 |
| Depreciation + Amortization | 614 | 596 | 610 | 1,210 | 1,212 |
| Interest | 365 | 364 | 482 | 729 | 1,042 |
| PBT (before exceptional) | 953 | 2,503 | 3,507 | 3,455 | 6,916 |
| Exceptional Gain/(Loss) | (898) | 61 | – | (838) | – |
| PAT (before exceptional) (Continuing Operations) | 892 | 1,929 | 2,584 | 2,821 | 5,100 |
| Reported PAT/(Loss) (Continuing Operations) | 219 | 1,990 | 2,584 | 2,209 | 5,100 |
* Incl. GST; ** Adjusted for one-off FX gain of INR412Cr in 2QFY23, INR 7Cr in Q2FY22, INR 898 Cr in 1HFY23, INR 95 Cr in 1HFY22
FOR FURTHER INFORMATION PLEASE CONTACT:
For Media Interaction:
1. Mr. Sudeep Purkayastha
(Head- Corporate Communication)
For Investor Queries:
Forward looking and Cautionary Statements: -
Certain statements in this release concerning the future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, intense competition within steel industry including those factors which may affect company’s cost advantage , time and cost overruns on fixed – price, company’s ability to manage operations, reduced demand for steel , power etc., The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the Company. The numbers & statements in this release (including but not limited to balance sheet related items) are provisional in nature and could materially change in future, based on any restatements or regrouping of items etc.