OREANDA-NEWS. JSPL, notwithstanding several unfavourable developments during Q2, FY 14-15 including de-allocation of its coal mines, reduced demand for steel due to monsoon season and major difficulties encountered in importing raw material due to heavy congestion in ports and non - availability of rail transport out of ports. JSPL grew its consolidated Q2 turnover by 6% y-o-y. EBITDA in Q2, FY14-15 at consolidated level also increased by 13% compared to Q2 of the previous year. EBITDA in percentage terms increased from 30% in Q2FY13-14 to 32% in Q2FY14-15. However, due to 53% increase in burden of interest and depreciation, the PAT for Q2 FY14-15 was lower by 12%. The Company's cash profit during Q2 increased from Rs. 907 Crores in FY 13-14 to Rs. 1308 Crores in FY14-15 - a net increase of 44%. JSPL's consolidated turnover and EBITDA during H1 also increased by 6% and 18% respectively compared to the same period of the previous year.

STEEL: JSPL STANDALONE

JSPL's standalone turnover, however declined by 9% due to a major up gradation programme of its Raigarh plant which was successfully completed by the end of September 2014. However, EBITDA level in Q2 increased from 28% in FY13-14 to 34% in FY14-15. PAT and Cash Profit, during Q2, increased by 12% and 62% respectively. Although, JSPL's turnover during H1 dropped marginally, EBITDA margin in H1 FY 14­15 rose to 35% compared to 27% in the same period of previous year. Both PAT and Cash Profit increased by 20% and 52% respectively in H1 FY 14-15 as compared to same period last year.

While Raigarh Steel unit increased its capacity to 3.6 MTPA compared to the previous 3.0 MTPA, Coal Gasification Plant (CGP) and DRI units also achieved new highs in their performance. Although the Company encountered major challenge in sourcing coal for CGP plant due to non-availability of its own local source, the plant achieved a capacity utilization level of 60%. JSPL's CGP + DRI plant are world's largest integrated plant based on syngas with a capacity of 1.8 MTPA. Although JSPL successfully commissioned its new Pelletisation plant in March 2014, the combined plant was operated 50% capacity utilization in view of limited iron ore availability. Consequently, Company's external sales of pellets witnessed a major drop.

The Company's continued efforts to achieve higher NSR saw its NSR / ton of steel increase by 4.6% during Q2 compared to same quarter in FY 13-14. Retail business of the company increased by 3 folds in H1 FY 14-15 compared to same period of the previous year. Efforts to expand our retail network continued and the company at the end of Q2 FY 14-15 has 1550 dealers on a country wide basis.

POWER

Jindal Power Ltd, inspite of major problems in meeting its coal requirement for Tamnar Phase II units saw its Q2 sales and EBITDA grow by 39% and 21% respectively compared to the same quarter in the previous year. Three out of its four units are already commissioned, while the fourth unit would be commissioned before the end of the current financial year. Two of the four 600 MW each units already have the coal linkage while the remaining two, as per Government's commitment will be given fuel linkage before March 31, 2015. As per Supreme Court's recent judgement, the coal block of Tamnar Phase - I is cancelled but the company is making all possible efforts to secure the necessary coal blocks / linkage from the auction to be held shortly.

GLOBAL VENTURES

JSPL's Oman unit has been performing consistently well and during Q2, FY 14-15 its turnover and PAT increased by 32% and 104% respectively. However, Company's WCL Australia coking coal mines continued to make losses due to operational reasons as well as low price levels. However, a major restructuring of its operations has been done which is expected to result in turnaround of business next year.