The JSPL on Monday announced that it had made a prepayment of Rs. 2,462 crore to its term lenders. The company said that this was in continuation of its long-stated financial strategy of debt reduction and building a ‘robust balance sheet with the optimum capital mix.’
The steel giant’s production stood at 7.51 million tonnes during the financial year ending 31 March 2021. The JSPL has recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.
The JSPL said that it had worked tirelessly with a singular focus on debt reduction of more than Rs. 20000 crores from a peak of approx. Rs.46,500 Cr in 3QFY17 to Rs.25,600 Cr as reported in 3QFY21. This reduction of Rs.2,462 Cr is over & above the annual committed debt reduction in the financial year 2020-2021.
Speaking on this development JSPL’s MD VR Sharma said, “The significant debt reduction is part of our long-term financial strategy to create a strong balance sheet. In the coming quarters, we intend to further strengthen our balance sheet and become net debt-free shortly.”
JSPL is an industrial powerhouse with a dominant presence in the steel, power, mining, and infrastructure sectors. Having an investment of USD 11 billion across the globe, the company is continuously scaling its capacity utilization and efficiencies to capture opportunities for building a self-reliant India