Jindal Steel and Power Ltd.’s Q1 FY23 Ebitda was ahead of our estimate due to higher than expected inventory gains.
Its sales volumes fell by 16% QoQ to 1.74 million tonnes on account of plant shutdown and lack of thermal coal availability. Nevertheless, its Ebitda grew by 13% QoQ to Rs 34 billion on account of inventory gain and lower other expenses.
JSPL’s net debt fell by Rs 11 billion QoQ to Rs 77 billion. We raise our FY23 Ebitda estimate by 7% to account for better than expected Q1 FY23 results. Also, we factor lower iron ore prices over FY23-24 due to weak domestic demand.