Jindal Steel and Power September quarter net loss widens to Rs 706 crore

Jindal Steel and Power Ltd (JSPL) on Friday said its total loss on a consolidated basis widened to Rs 706.49 crore for the quarter to September 2020.

Its total consolidated loss was Rs 399.31 crore in the corresponding year-ago period, JSPL said in a filing to BSE.

Total income of the company on a consolidated basis in July-September increased to Rs 9,137.43 crore from Rs 7,688.62 crore a year ago.

In a statement, the company said the quarter ended September 2020 went well for the entire steel industry in India with utilisation levels increasing and domestic demand coming back as the lockdowns eased and business normalised across the country.

During the second quarter of FY'21, JSPL on a standalone basis reported highest ever steel production volumes (including pig iron) at 1.84 million tonnes and sales of 1.93 million tonnes.

As domestic demand returned, the company increased its sales within India, reflected in declining export trend in the reported quarter.

Exports stood at 0.74 million tonnes.

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 marginal increase in realisations, JSPL on a standalone basis reported gross revenue of Rs 8,667 crore.

In the Q2 of FY'21, JSPL successfully completed the first tranche of the divestment by selling 48.99 per cent of the Oman subsidiary to the acquirer.

"In accordance with Ind AS 105 'Non-current Assets held for Sale and Discontinued Operations', assets and liabilities of business operation forming part of disposal group (Group Oman) have been disclosed as assets and liabilities held for sale in the consolidated financial statements," the statement said.