Jindal Steel up in green
Jindal Steel & Power (JSPL) is right there among the top five gainers on the BSE since the opening bell. The stock opened with a gain of 6% at Rs.102 and then rose further by almost 10% to Rs.106, briefly touching its 10% UC of the day.
The market is pretty happy with its turnaround earnings for Q4FY20. It posted a consolidated net profit of Rs.306 crore v/s net loss of Rs.2713 crore in previous Q4.
Net sales dropped 12% at Rs.8811 crore while EBITDA rose 20% at Rs.2220 crore, with margins also showing a sharp improvement from 18% to 25% (YoY).
On the raw material prices front, the company said that seaborne Iron prices remain firm due to healthy demand from China. Its Met Coal Prices softened post March 2020 due to declined steel production while there has been strong recovery of scrap post Covid outbreak.
Its interest outgo has come down from Rs.980 crore to Rs.623 crore in Q4FY20.
As of 31 March 2020, JSPL reported a consolidated net debt of Rs 35,919 crore and it generated cash profit Rs 265 crore during the quarter.