Jindal Steel & Power : FINANCIAL RESULTS FOR FOURTH QUARTER & FULL YEAR FY2016-17

PRESS R ELEASE

FIN ANCIAL RESUL TS FOR FOU RTH QUAR T E R & FUL L Y E AR FY2016- 17

JSPL achieves several firsts & new highs in Q4

• Sinter plant & Coke Oven batteries of 4MT expansion of Angul Steel Plant commissioned

• FY 17- Highest ever revenue of Rs. 22,696 Cr

• FY 17 -Consolidated EBITDA rises by 36% YoY

• Steel Exports increase by 175%

• Becomes India's largest exporter of pellets

JSPL Standalone 4QFY17Performance (YoY):

• Turnover : Rs. 4,545 Cr; increased by 13%

• EBITDA: Rs. 914 Cr; increased by 34%

• EBITDA Margin: 20%

• Pellet Sales (External + Captive) : 1.70 million tonnes; increased by 33%

• Steel Exports : 210,000 MT; increased by 300%

• Working Capital : Reduction of Rs. 575 Cr in 4QFY17

• Crude Steel Production: 0.91 million tonnes

• Steel Sales: 0.92 million tonnes

  JSPL Consolidated 4QFY17 Performance (YoY):

• Turnover : Rs. 6,756 Cr; increased by 24%

• EBITDA : Rs. 1,552 Cr; increased by 73%

• EBITDA Margin: 23%

• EBITDA - Oman : US$ 32mn ; increased by90%

• Crude Steel Production: 1.30 million tonnes

• Steel Sales: 1.31 million tonnes

  JPL 4QFY17 Performance (YoY):

• Turnover : Rs. 863 Cr

• EBITDA : Rs. 382 Cr

• EBITDA Margin: 44%

• Cash Profit: Rs. 241 Cr

JSPL which started its performance recovery in 3QFY17 continued its momentum for an all round improvement of its performance through 4QFY17. Although market for raw materials and finished products were quite volatile, the company managed the uncertainities quite well and achieved performance level which were superior not only compared to FY16 but also Q3

JSPL - Financial Results 4Q & FY17 1

results of FY17. The Government support to domestic steel and power industry has been unequivocal not only by the way of protection against dumping of foreign supplies but also by giving stimulus to local demand by way of enhanced investment in infrastructure. Indian Steel Industry, now the second largest in the world, is well poised for recovery and stable performance.

1. JSPL Standalone Performance
2. Fourth Quarter FY17 Performance

   JSPL sales during 4Q increased by 13% and 17% compared to 4QFY16 and 3QFY17 respectively. EBITDA for the same period increased by 34% and 17% respectively. EBITDA margin in the reported quarter stood at 20% compared to 17% in 4QFY16. The Profit Before Tax (PBT) in 4QFY17 improved 83% and 73% compared to 4QFY16 & 3QFY17 respectively.

3. Full Year FY17 Perfomance

   On a full year basis, JSPL standalone Sales turnover in FY17 rose by 5% while EBITDA at Rs.

   2,858 Cr increased by 17% compared to the previous year.

4. Pellet Business Unit

   The Pellet unit of JSPL achieved an unprecedented performance both in production and sales of pellets. During 4QFY17, sale of pellets increased by 33% to reach a level of 1.70 million tonnes. While the production of pellets in FY17 increased by 41%, 6.5 million tonnes Vs. 4.6 million tonnes, the external dispatch to customers in domestic and export markets increased by 3 times in FY17 compared to FY16. JSPL during FY17 emerged as the largest exporter of pellets, with total export volumes of 2.33 million tonnes.

5. Export Performance

   JSPL's export of steel during 4QFY17 rose by 195% while on QoQ basis increased by 20%.

   For the year as a whole, steel exports in value terms increased by 175%.

   JSPL - Financial Results 4Q & FY17 2

   The combined export of steel & pellets during FY17 increased to Rs, 3,138 Cr compared to a mere Rs. 708 Cr in FY16, which is 340% increase. JSPL exported its steel to Europe, Middle East, Africa and North America. Pellets were exported to China, Egypt, Oman and Turkey.

6. JSPL Consolidated Performance
7. Fourth Quarter FY17 Performance

   The Consolidated Sales for the quarter ended March'17 were this far its highest in any quarter. The 4QFY17 sales were about 24% higher while the EBITDA for the same period (YoY) increased by 73%. 4QFY17 EBITDA, in absolute terms, increased to 23% from 16% in the same quarter of FY16. The overall PBT and PAT for 4QFY17 also improved by 94% and 85% YoY respectively.

   Even when compared to 3QFY17, the sales of 4QFY17 improved by 17%, thus confirming the continued improvement trend. Overall EBITDA in 4QFY17 increased by 22% over 3QFY17.

8. Full Year FY17 Performance

   JSPL achieved its highest ever-annual revenue of Rs. 22,696 Cr, which is 11% higher than previous year. The aggregate EBITDA rose by 36% compared to previous year FY16. The overall EBITDA for FY17 stood at 21% vs. 17% for FY16.

   The Company achieved a Consolidated Steel Sales of 1.31 million tonnes in 4QFY17 and 4.7 million tonnes for the twelve months ended March'17.

   As of year ended 31st March'2017, JSPL consolidated net debt was Rs. 45,490 Cr.

   With effect from 1st April, 2016, the Company has adopted the Indian Accounting Standard (Ind- As) and the financial results for the quarter ended 30th June' 2016, 30th Sept' 2016, 31st December' 2016 and 31st March' 2017 have been prepared in accordance with the recognition and measurement principles laid down in the Ind-As 34 Interim Financial Reporting (prescribed under

   JSPL - Financial Results 4Q & FY17 3

   Section 133 of the Companies Act, 2013 read with relevant rules issued thereafter). The results for the quarter ended 30th June 2015, 30th Sept' 2015, 31st December'2015 and 31st March' 2016 have been restated to comply with Ind-As to make them comparable.

9. Jindal Power Ltd (JPL)
10. Fourth Quarter FY17

    The Company with intense focus on "Operational Excellence" posted an all round improvement in its performance during 4QFY17. The revenue for 4QFY17 increased by 28% compared to the same quarter in FY16. EBITDA for the quarter ending March'17 recorded an impressive improvement of 263% compared to 4QFY16 and it reached a level of 44%.

    Although both PBT & PAT improved by as much as 71% and 79% over 4QFY16respectively, the overall PAT was still at a loss of Rs. 84 Cr. This is caused due to continued low PLF and burden of depreciation and interest on the operating performance. This business segment, however, achieved a net positive cash flow of Rs. 241 Cr in 4QFY17.

11. Full Year FY17

On an annual basis, JPL revenues increased by 4% but EBITDA rose by 65% for the year FY17. The EBITDA margin for FY17 stood at 34% compared to 21% for FY16. JPL also achieved a net cash profit of Rs. 656 Cr.

As a result of the various initiatives taken during the year to bring down costs, the Company successfully managed to decrease its fuel costs by more than 10% YoY. Similarly, the efficiency of the plants also increased with the auxiliary coming down by 10% of the consumption recorded in the same quarter last year.

Complimenting the Government's efforts to manage grade slippages and by using the scheme to secure credits against any such slippages, institutionalized by Coal India, JPL became the first company to receive such Credit Notes from Coal India.

JSPL - Financial Results 4Q & FY17 4