JSPL beats the trend, reports 12% rise in Q1 Steel Sales amid Covid-19

Jindal Steel & Power Limited (JSPL) has beaten the trend reporting healthy growth in production and sales volume during April-June quarter in the midst economic crisis triggered by coronavirus pandemic.

The company's stand-alone steel production (including pig iron) grew 8 per cent quarter-on-quarter (q-o-q) during Q1 FY'21 while it recorded a 12 per cent growth (q-o-q) in sales volumes during the period.

The sales volume in the quarter stood at 16,70,000 tonne which includes highest ever steel production of 6,26,000 tonne in June.

Impacted by Covid-19 induced lockdowns, several steel companies have been forced to go in for production cuts due to fall in sales.

JSPL on the other hand has been able to maintain and grow its sales by focused sales in domestic market while increasing the quantum of overseas sales.

The export sales contributed to 58 per cent of total sales volumes in Q1 FY'21 for JSPL. On absolute terms, export sales stood at 9,00,000 tonne in Q1.

Along with growth on a standalone basis, the company's consolidated sales also rise by 7 per cent (Q-o-Q) during the April-June quarter.

The company is also also strengthening its financial by cutting down the debt. On Tuesday, JSPL announced that it will sell its entire stake in its Oman asset, Jindal Shadeed Iron and Steel Co LLC (JSIS Oman) 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, the company had said in a regulatory filing.

"In last 100 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," said V.R. Sharma, Managing Director, JSPL.

"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, Defence, Shipbuilding, Oil & Gas and others," Sharma added.

JSPL is an industrial conglomerate with a dominant presence in steel, power, mining and infrastructure sectors. Having an investment of $12 billion across the globe, the Company is continuously scaling its capacity utilization and efficiencies to capture opportunities for Building a self-reliant India.

--IANS

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