Aug. 11, 2017 - Jindal Steel & Power Ltd. saw its losses narrow in the April-June quarter more than analyst estimates as margins expanded.

The steel manufacturer reported a net loss of Rs 420 crore in the first quarter of financial year 2017-18, compared to Rs 1,238 crore figures in the corresponding quarter. Revenue increased 21 percent to 5,668 crore on a year-on-year basis.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 33.2 percent to Rs 1,352 crore year-on-year. EBITDA margin expanded to 23.9 percent from 21.7 percent in the same period.

Production rose 5. 9 percent to 1.26 million tonne year-on-year while sales volumes increased marginally to 1.15 million tonnes. The company's steel production rose 7 percent to 0.90 million tonnes for the quarter-ended June while standalone steel sales increased 4 percent to 0.81 million tonnes from the same period last year.

“The overall outlook looks promising with demand of HR coils,plates and structures posting higher growth rates, while the demand for TMT rebar and wire rod still remain tepid,” JSPL said in its media statement.

The company has commissioned its 4 million tonnes blast furnace into service during the second quarter of the current financial year. Production from this unit is expected to reach its full potential by the end of FY18, JSPL said.

JSPL expects steel production and sales volumes to double by the end of this financial year. Prices in the domestic market are likely to show a moderate increase due to higher export volumes, the company said in its analyst presentation. It is also looking at reducing overall costs in mining processes and increase margin in all overseas mining entities, JSPL said.