1QFY17: Shutdown impacts volumes; Oman EBITDA doubles YoY Standalone (SA) steel sales volumes fell 8% YoY (-23% QoQ) to 780kt due to shutdown. Pellet sales jumped 7x YoY to 700kt on attractive exports market.SA steel-only EBITDA/t increased ~INR1,100 QoQ to INR7,435 on higher steel prices. S/A EBITDA declined 2% QoQ to ~INR6.6b due to lower volumes.Jindal Power (JPL) PLF declined 300bp QoQ to 29%. EBITDA/kWh improved 50% QoQ to INR0.9 on account of commencement of 200MW Kerala PPA.Other subsidiaries’ EBITDA rose 6% YoY (+45% QoQ) to INR3.2b, led by Oman. Oman EBITDA was up 2x YoY to INR2.2b driven by steel prices.Networth more than doubled, boosted by ~INR208b on revaluation of land, plant, machinery and buildings. Hence, depreciation was higher. Net debt was broadly flat QoQ at ~INR464b.

JPL’s PLF is estimated to improve on Kerala PPA. SA earnings will be driven by volume pick- up in the second half, while margins will be stable despite steel price increase. We continue to value the stock on asset-based approach (Exhibit 8) because of underutilized power assets in the near term and investment in under-construction steel project. We are raising TP to INR88/share (earlier: INR75). Maintain Neutral.