Quarter PerformanceThe consolidated topline grew by robust 42% to Rs. 5482.33 crore in March 2012 quarter aided by notable performance of its iron and steel sales. The iron and steel sales grew by robust 47% to Rs. 4404.35 crore on back of impressive sales across all products. The steel products sales volume (i.e. slabs/bloom/billets etc) grew by 39% to 7.36 lakh MT while the pellet sales spurted by whopping 207% to 6.90 lakh MT gaining from iron ore shortage and full liquidation of pellet inventory held in Dec 2011 quarter. Also the sponge iron sale grew by whopping 206% to 25285 MT. Only the pig iron sales crashed by notable 94% to 2614 MT primarily due to higher captive consumption. The power sales grew by 19% to Rs. 1280.33 crore.
The consolidated OPM crashed by whopping 990 bps to 34.9% due to significant spike in raw material costs and higher staff cost. The raw material costs, as % to sales net stock adjusted, surged by outstanding 3000 bps to 36% due to increased import of sponge iron (HBI) from Oman plant and forex impact on coking coal. Thus the operating profit growth was constrained drastically to 11% to Rs. 1914.41 crore. The PBIT margin of iron & steel crashed by 260 bps to 27% thereby limiting the growth in its PBIT to 34% to Rs. 1196.94 crore. Also the PBIT margin of power crashed by outstanding 1920 bps to 49% resulting in 14% fall in its PBIT to Rs. 621.27 crore.
Consolidated PBT grew by meager 5% to Rs. 1436.67 crore on overall unfavorable non operating performance. The other income fell by 22% to Rs. 46.96 crore. Further the interest cost grew by notable 43% to Rs. 128.87 crore while the depreciation cost increased by 18% to Rs. 395.83 crore. Fortunately, the PAT grew by 16% to Rs. 1161.55 crore on crash in effective tax rate by whopping 740 bps on account of adjustment of deferred tax. The net profit settled with 17% growth to Rs. 1167.01 crore.
The above consolidated results for March 2012 quarter also include the financial results of Jindal Power, a subsidiary of JSPL. The net sales of Jindal Power fell by 7% to Rs. 773.20 crore while the net profit declined by 15% to Rs. 421.38 crore. It generated power of 2125 million units with PLF of 98% in March 2012 quarter against 2178 million units in March 2011 quarter.
On standalone basis, its net profit grew by 21% to Rs. 783.63 crore on robust 52% growth in net sales to Rs. 4174.02 crore.
Annual Performance
In financial year 2011-12, the consolidated topline grew by robust 39% to Rs. 18208.60 crore aided by impressive performance of iron and steel sales though flat power sales restricted the growth to some extent. The iron & steel sales grew by robust 52% to Rs. 14500.11 crore. It was backed by whopping 259% growth in pellet sales (to 20.28 lakh MT) and 26% growth in steel products (to 23.85 lakh MT). Only the sponge iron and pig iron sales fell by 31% to 78457 MT and 58% to 85428 MT respectively on account of higher captive consumption. The power sales grew by flat 3% to Rs. 4464.32 crore.
The consolidated OPM crashed by whopping 1040 bps to 38.4% on account of spike in raw material costs. The raw material costs, as % to sales net stock adjusted, surged by whopping 970 bps to 32% due to increased imports of sponge iron from Oman plant, steep rupee depreciation and increase in steel costs. Thus the operating profit growth was drastically restricted to 9% to Rs. 6987.31 crore. Segmentwise, the PBIT margin of iron & steel fell by 140 bps to 29% thereby limiting PBIT growth to 45% to Rs. 4181.50 crore. Further the PBIT margin of power was dragged down by whopping 860 bps to 59% resulting in 10% fall in its PBIT to Rs. 2653.53 crore.
Growth in other income by impressive 74% (includes interim dividend of Rs. 130.05 crore from Jindal Power) was offset by higher interest and depreciation costs thereby limiting growth in PBT before EO to 5% to Rs. 5236.83 crore. Further on accounting net EO expense of Rs. 48.23 crore (EO expense of Rs. 74.17 crore representing investments written off/provided for losses in mining and exploration activity overseas and EO income of Rs. 25.94 crore), the PBT after EO grew by marginal 4% to Rs. 5188.60 crore. Nonetheless, 90 bps fall in effective tax rate and improved profit from associates enabled 6% growth in net profit to Rs. 3964.90 crore.
The net sales of Jindal Power, which is included above, fell by 11% to Rs. 2979.67 crore while the net profit reduced by 12% to Rs. 1764.99 crore in FY 2012. It generated power of 8589 million units against 8598 in FY 11.
On standalone basis, the net profit grew by flat 2% to Rs. 2110.65 crore on robust 39% growth in topline to Rs. 13333.95 crore.
Rohit Saxena
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