Jindal Steel & Power becomes regular supplier of Indian Railways; stock gains 59.83 in a year

Jindal Steel & Power Limited (JSPL) is a conglomerate operating in the steel, power, mining & infrastructure sector. The company has become the first-ever private company to get the stamp of ‘regular supplier’ from the Indian railways. JSPL would be supplying 60 kg of 880-grade prime (90 UTS) rails, which has been approved by Research Design & Standards Organisation (RDSO) as well as by the Ministry of Railways.   

Commenting on this, Managing Director of JSPL, V R Sharma said, “We are happy that Indian Railways has awarded regular supplier status to JSPL made 60kg 880 grade (90UTS) rails, it would be a big push towards an Atma Nirbhar Bharat.”  

Meanwhile, JSPL would also be supplying 1,080 grades for the construction of Kolkata metro rail tracks as well as for Pune metro project. On a YoY basis, at the end of Q2FY21, the company reported Rs 8,989.79 crore of net sales, which are up by 16.94 per cent as compared to the previous year’s Rs 7,687.78 crore. Operational profit also shot up 87.62 per cent and is currently at Rs 2,849.89 crore. Tax and massive expenses led to a net loss.   

The new project approval from Indian Railways can be expected to bring in sustainable cash flows. The stock has gained 59.83 per cent over the year but today, despite the news, the stock plummeted 3 per cent and closed at Rs 259.35 per share below its 52-week high of Rs 287.35 per share.