Jindal Steel and Power share price declines 7% despite good Q2 results. This is what brokerages have to say

livemint.com:

Jindal Steel and Power Ltd (JSPL) share price declined more than 7% during intraday trades on Wednesday post its Q2 results, which were declared after-market hours on Tuesday. The company while reported a strong net profit growth it is the slight extension in expansion timeline and the concerns on rising coal costs that has led to the analysts cutting forward estimates.

The impact of the rise in coking coal prices seen during Q2 will be reflected during the second half. Also Read- Ambuja Cements Q2 Results: Net profit jumps over four times to ₹643.9 crore; revenue up 8% YoY Analysts at Prabhudas Lilladher have cut FY24 and 25 EBITDA estimates by 9% and 7% respectively on higher coking coal price assumption and delays in capacity addition respectively.

Motilal Oswal Finacial Services Ltd also said that "Considering the substantial increase in coal cost in the last few months and delayed capex, we have revised our FY24 and FY25 Ebitda estimates by 13% and 6% respectively. Jindal Steel and Power's ongoing capex at Angul has been delayed by a few quarters and a majority of the capex is now expected to be completed by the end of FY25, said analysts at MOFSL.

The capex outlay has also been increased by ₹7000 Crore to ₹31000 crore, which they attributed to increase is attributed to scope changes and configuration adjustment. Jindal Steel reported net profit at ₹1,390 crore though grew 534% year-on-year the same was also helped by almost negligible taxes.

The operating performance remained strong and adjusted Ebitda stood at ₹2,213 Crore up 19% year-on-year adjusted for one-off forex gains of ₹73 Cr during the quarter as per the company.. Strong performance was driven by sharp reduction in costs which offset seasonally weak