Jindal Steel & Power falls 8% on profit booking post Q4 results

Shares of Jindal Steel & Power (JSPL) have declined 8% to Rs 241 per share on the market in noon deal trade on profit booking after the company reported a consolidated net loss of Rs 4.26 billion for the last quarter of financial year 2017-2018 (Q4FY18). This is over four times the net loss of Rs 983 million reported by the company in the corresponding quarter of financial year 2016-2017 (Q4FY17).
The net loss of the company widened during the quarter, mainly on account of a one-time expense of Rs 4.38 billion due to certain demands and claims from regulatory authorities.

Total revenue increased by 23% at Rs 85.99 billion against Rs 69.93 billion in the corresponding quarter of previous fiscal. Earnings before interest, taxes, depreciation and amortisation (EBITDA) margin improved 200 bps at 25% from 23% in year ago quarter.

On standalone basis, JSPL witnessed a turnaround in the fourth quarter and came back with Rs 1.45 billion after 13 quarters. The company reported a loss of Rs 740 million in last quarter and a loss of Rs 1.16 billion in the same quarter last year.