United States

Analyst Research Report Snapshot


Jindal Steel & Power (JSP) - Qtr. Update - Dated - April 30, 2014




Axis Capital Limited


02 May 2014





Companies referenced:


Available for Immediate Download

Jindal Steel and Power’s (Bloomberg: JSP IN) Q4 adj. PAT at Rs 3.8 bn was below our estimate of Rs 5.1 bn, mainly due to higher than expected losses at international mining operations.  The company indicated its key priority in FY15 is to reduce international losses and ramp up production at recently commissioned steel and power plants  For Tamnar-II (4 X 600MW), JSPL has commissioned 3 units, but actual supply restricted to ~400 MW due to grid constraints The stock is Under Review due to uncertainty on merchant power sales from captive mines and pending outcome of Shah Commission report on iron ore mines. Q4 highlights  Jindal Power (1 GW): Realization for the quarter was Rs 3.15/kWh (down 1% YoY, but up 2% QoQ). The cost of generation in Q4 has gone up significantly to Rs 1.56/kWh (+17% YoY) likely due to diesel price hike for mining  Steel: Volumes were 765 kt (down 16% YoY) led by expansion-related shutdown taken during the quarter. The company commissioned (a) Angul plant, (b) 2 mnt Oman steel plant, and (c) 4.5 mnt pellet plant. We expect a gradual ramp up in these capacities which should improve volumes in FY15 and FY16. Our steel volumes are 3.4 mnt in FY15 and 3.8 mnt in FY16 Change in estimates: We have cut FY15E EPS estimate by 6% to factor in earlier commissioning and consequent impact of under-utilization of Tamnar-II project. Our revised FY15/FY16 EPS estimates are Rs 25.5/ Rs 35.2. Regards, Bhavin Vithlani (Executive Director – Power & Cap Goods) Institutional Equity Research Axis Capital Ltd Tel.: + 91 22 4325 1144 Jagdishwar Toppo (Executive Director – Materials) Institutional Equity Research Axis Capital Ltd Tel: +91 22 4325 1103 Nitesh Jain (Sr VP – Materials) Institutional Equity Research Axis Capital Ltd Tel: +91 22 4325 1145 Anup Kulkarni (AVP – Power) Institutional Equity Research Axis Capital Ltd Tel.: + 91 22 4325 1120

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.