Rumours of payment defaults fake news, company generating adequate cash: JSPL

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Jindal Steel and Power Ltd (JSPL) on Thursday said that there were absolutely no truth in rumours and speculations of the company defaulting payments.

JSPL

Terming the rumours as ‘baseless and false in nature,’ the company said that it was generating adequate cash. Managing Director (Designate) JSPL VR Sharma was quoted by news agency PTI, “The business is going on as usual and normal and the company is generating adequate cash. So much so, that the company has prepaid Rs 300 crore towards non-convertible debentures (NCDs) earlier than its due date.”

“Investors are advised to treat such news as fake news. The company strongly reiterates that it is on track to deliver its highest ever volumes this year and should be able to generate better returns for its stakeholders,” the company said in a statement late on Wednesday night.

Sharma also rejected rumours regarding sell-off in pledged shares, adding that ‘no sale of shares is being reported by any of the lenders.’ He also said that the promoter group was looking at reducing the pledge at the earliest. Sharma said that the company was set to deliver its ‘highest ever volumes this year’ and it should be able to ‘generate better returns for its stakeholders.’

JSPL is expected to report its April-June quarter results on 14 August.

JSPL is a part of the $18 billion OP Jindal Group with the company having its presence in steel, power, mining and infrastructure sectors.

Jindal Steel had recorded a 58% jump in standalone revenues for the fourth quarter of the financial year 2019. The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) too had also gone up by 51%.

Jindal Steel’s consolidated revenues too had experienced a jump of 41 percent, while its consolidated EBITDA went up by 30 percent. JSPL also reported that its debt had been reduced by Rs, 4,144 Cr in FY19.

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