Jindal Steel & Power Limited (JSPL), continued to report strong production in the first quarter of FY22. The steel giant’s production surged 20% year-on-year to 2.01 million tonnes (June 21 – 0.64 million tonnes), marking a record first-quarter production and the second-highest quarterly production ever.
The JSPL had earned plaudits during the second wave of the pandemic when the company decided to divert liquid oxygen to hospitals around the country to save human lives. This appears to have impacted the JSPL’s performance slightly, but the company said that it was confident of achieving the FY22 production target of 8.0-8.5 million tonnes.
A statement from the JSPL said that despite challenging demand conditions in the domestic market, as a result of a severe than the expected second wave of COVID-19, the company’s sales were resilient at 1.61 million tonnes (+3% Y-o-Y).
Buoyant export markets continued to provide support with exports accounting for 44% of volumes in the month of June 21 and 34% in 1QFY22. Exports were, however, impacted by logistical challenges posed by adverse weather conditions leading to congestion at ports. Inventory of 1.5 lakh tonnes currently remains stuck at the port and will be shipped as soon as the logistical bottlenecks are removed.
JSPL Managing Director VR Sharma said, “We are happy that despite pandemic adversities the company has maintained the growth momentum and an upward trajectory. We aim to produce 8.0-8.5 Million tonnes of steel in FY22 in line with our core philosophy of nation-building and working towards a self-reliant India. We also aim to reduce our overall debt to INR9,900 Crores by the end of this financial year. We are confident that the India growth story is intact and our economy will continue its growth trajectory.”
About JSPL:
JSPL is a leading Indian Infrastructure Conglomerate with a presence in the Steel, Power, and Mining sectors. With an investment of approximately 12 billion USD (90,000 Crore Rupees) across the globe, the Company is continuously scaling its capacity utilization and efficiencies to contribute towards building a self-reliant India.