JSPL steel sales rise 8% YoY

Jindal Steel & Power (JSPL) reported an 8% year on year increase in steel sales to 5.9 lakh tonnes in February 2022 as compared to 5.47 lakh tonnes sold in February 2021.

JSPL said sales would have been higher if not for limited rake availability in the eastern part of the country. The company further said that railway rake availability issue is not yet fully resolved, hampering its sales efforts. Meanwhile, exports contributed 24% to the sales volumes

On production side, JSPL's steel production stood at 6.57 lakh tonnes in February 2022 which was 1% higher than previous year.

VR Sharma, MD of JSPL said, The World has started feeling the heat of the unfortunate Russia- Ukraine conflict. Brent & energy prices are skyrocketing due to the full scale war in Eastern Europe. Input costs for Steam coal, Coking Coal and Ferro alloys are witnessing substantial rise which has resulted in higher steel prices. While we hope and pray for faster resolution of the conflict, it will take at least six months for markets to stabilize post war. Higher input costs should therefore result in continued rise in steel prices as the industry grapples with containing cost pressures.

JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. The company's standalone net profit from continuing operations declined 23% to Rs 1,714 crore despite 37% increase in net revenue to Rs 11,955 crore in Q3 FY22 over Q3 FY21.

Shares of JSPL were trading 1.27% lower at Rs 444 on BSE in early trade.

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