JSPL gains after steel production rises 15% YoY in Nov

Jindal Steel & Production (JSPL) gained 2.24% to Rs 266.55 after the steel maker reported robust growth in steel production in November 2020.

The company witnessed year on year growth of 15% in standalone steel production to 6,14,000 tonnes in November 2020 as compared to 533,000 tonnes of standalone steel production a year ago during the same period.

JSPL's standalone sales rose 0.9% to 562,000 tonnes in November 2020 from 557,000 tonnes sold in the previous year during the same period. The export sales contributed to 21% of total sales volumes in November 2020. The company's exports also grew at a rate of 10% year on year in November 2020.

Commenting on the positive growth, VR Sharma, MD of JSPL said, "Our performance is in line with the India Growth Story, Domestic Steel demand is rising in H2 FY21 and so JSPL's production. With domestic markets recovering the company is focusing more on value-added products. We believe the company's portfolio will witness further strength in the Q3 & Q4 of the financial year."

JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.

On a standalone basis, JSPL's net profit stood at Rs 997.98 crore in Q2 September 2020 steeply higher from Rs 15.15 crore reported in Q2 September 2019. Net sales rose by 19.6% year on year to Rs 7859.3 crore in Q2 September 2020.

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