Naveen Jindal-led Jindal Steel & Power Ltd (JSPL) has reported a consolidated net profit of Rs 903.30 crores in the second quarter of the financial year 2020-21. This has come as a huge boost to the company’s performance given that JSPL had reported a net loss of Rs. 321 crore in the same quarter last year. The company’s impressive performance has been credited to the increased steel prices and better domestic demand in the market.
The JSPL standalone reported its highest-ever steel production volumes (incl. pig iron) at 1.84 million tonnes (Up 16% YoY) and sales of 1.93 million tonnes (up 30% YoY) in the September quarter. As domestic demand returned, the company increased its sales within India, reflected in declining export trends in the reported quarter, declining to 38% (vs. 58% in 1QFY21). Exports stood at 0.74 million tonnes.
A statement by the company said, “Quarter ended September’20 went well for the entire Steel industry in India with utilization levels increasing and domestic demand coming back as the lockdown eased and business normalized across the country,”
While the flat prices rallied during the quarter, long prices were largely range-bound during the monsoons, though overall better on a sequential basis. On the back of increased volumes and a marginal increase in realisations, JSPL standalone reported gross revenue of Rs. 8,667 crores. Increasing efficiencies and lowering raw material costs helped JSPL standalone post its highest-ever EBITDA at Rs. 2,435 crores (Up 33% QoQ).
During the 2QFY21, the production of pellets was 2.01 million tonnes. The company recorded external pellet sales of 0.73 million tonnes during the 2QFY21.
Amidst the COVID-19 pandemic, the JSPL registered an impressive standalone profit of Rs. 505 crore in April-June quarter of FY21.
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.
Having an investment of 12 billion USD across the globe, the Company is continuously scaling its capacity utilization and efficiencies to capture opportunities for building a self-reliant India.