Jindal Steel & Power (JSPL) Q4FY21 profitability was a beat. It reported highest ever consolidated EBITDA of Rs 53 billion (+153% YoY) mainly driven by higher realizations and operating efficiencies. Its net debt fell by Rs 35 billion QoQ to Rs 138 billion. Importantly, JSPL announced its intention to double its steel capacity at Angul from 6 mtpa to 12 mtpa which would take JSPL's total capacity to 16 mtpa with a capex of Rs 180 billion by FY25.

Commenting on the result review, IDBI Capital said, "Steel prices have risen sharply in the past six months. Hence, we raise our realization estimate and our EBITDA estimates for FY22/FY23 by 51%/43% as we now expect higher steel prices to sustain. Our revised SOTP-based TP is Rs 609 (earlier Rs 375)."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.