JSPL rises on reporting 12% QoQ growth in steel sales

Jindal Steel & Power (JSPL) rose 0.33% to Rs 154.20 after the company reported growth in its standalone steel production and sales during Q1 June 2020.

The company recorded a 12% growth in sales volumes to 1.56 million tonnes (MT) and 8% rise in standalone steel (including pig iron) production to 1.67 MT in Q1 June 2020 over Q4 March 2020 (Q-o-Q).

The export sales contributed to 58% of total sales volumes in Q1 FY21. The company's consolidated sales rose by 7% to 2.07 MT (Q-o-Q) during Q1 FY21. Consolidated production fell 4% (Q-o-Q) to 2.03 MT in Q1 FY21.

JSPL's MD, VR Sharma, said, "In last loo days JSPL exported more than one million tons, this was possible with the consistent support of Indian Railways, port authorities and a slew of pro-industry measures taken by Ministry of Steel to reboot the economy. We believe in Indian growth story and continue to work to fulfil the dream of making India 'Aatmanirbhar' by import substitution of value-added steel products catering to requirements of Indian Railways, Defense, Shipbuilding, Oil & Gas and others, Sharma further added.

Meanwhile, JSPL on Tuesday said it would transfer its entire stake in its Oman asset, Jindal Shadeed Iron and Steel, to another promoter group firm, Templar Investments, for an enterprise value of over $1 billion. The divestment is in line with JSPL's vision and commitment to continuously bring down its debt and deleverage its balance sheet.

Templar Investments Ltd, Mauritius, is an investment company and part of the promoter group of JSPL.

JSPL's consolidated net profit stood at Rs 305.62 crore in Q4 March 2020 compared with net loss of Rs 2,713.34 crore in Q4 March 2019. Its onsolidated net sales dropped 13.3% to Rs 8,810.68 crore in Q4 March 2020 over Q4 March 2019.

JSPL's segments majorly include iron & steel and power. It is also engaged in aviation services and machinery division. The company's product portfolio consists of steel product mix, construction solutions, and construction material and solutions.

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