JSPL achieves YoY growth of 20 per cent in steel production

Solid performance in Q1FY22 has given confidence to the company of achieving FY22 production target of 8.0-8.5 million tonnes.

Jindal Steel & Power Limited (JSPL) has informed the bourses about its performance during June quarter of FY22 i.e. Q1FY22.  

Solid performance in Q1FY22 has given confidence to the company of achieving FY22 production target of 8.0-8.5 million tonnes. 

Steel production surged 20 per cent YoY to 2.01 million tonnes, marking a record first-quarter production and second-highest quarterly production ever. Despite challenging demand conditions in the domestic market due to the severe-than-expected second wave of COVID-19, JSPL sales grew by 3 per cent YoY to 1.61 million tonnes. 

Buoyant export markets continued to provide support with exports accounting for 44 per cent of volumes in the month of June 21 while 34 per cent in Q1FY22. 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 port, which will be shipped as soon as the logistical bottlenecks are removed. 

The company’s management aims to reduce the overall debt to Rs 9,900 crore by the end of this financial year. 

On Wednesday during the early morning session, the stock of JSPL was trading 1 per cent higher at Rs 395 from its previous close of Rs 391 on BSE.