Jindal Steel and Power Limited (JSPL) third quarter numbers are not expected to be great.
Year-on-year (YoY) basis, the topline may grow only 2-3 percent but margins are likely to see a bit of a compression. Margins are likely to come in around 17.7 percent. According to CNBC-TV18 poll, the company is likely to report a net loss of around Rs 270 crore odd.
As per the cheat sheet, the sales volume have shown a good growth in otherwise difficult environment with a growth of close to around 30 percent and exports are up 2x in this past quarter.
The revenue growth is likely be led by higher volumes. However realisations are likely to be lower along with lower power selling cost per unit, which will hurt them. EBITDA for the company in Q3 will be under pressure because they have exported more but with international steel prices being low it will hurt their realisation. The power business too is expected to be under pressure.
The key to watch out for would be the management commentary and their deleveraging plan.