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Jindal Steel & Power Ltd.

BSE: 532286 Sector: Metals & Mining
NSE: JINDALSTEL ISIN Code: INE749A01030
BSE 00:00 | 20 May 478.90 18.55
(4.03%)
OPEN

472.85

HIGH

481.30

LOW

470.00

NSE 00:00 | 20 May 478.80 18.05
(3.92%)
OPEN

475.00

HIGH

481.70

LOW

469.95

OPEN 472.85
PREVIOUS CLOSE 460.35
VOLUME 155656
52-Week high 577.70
52-Week low 340.10
P/E 4.65
Mkt Cap.(Rs cr) 48,853
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 472.85
CLOSE 460.35
VOLUME 155656
52-Week high 577.70
52-Week low 340.10
P/E 4.65
Mkt Cap.(Rs cr) 48,853
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jindal Steel & Power Ltd. (JINDALSTEL) - Chairman Speech

Company chairman speech

As the wider world including India gets into the recovery mode steelis set to play a key role. Infrastructure will continue to act as an economic multiplierand with massive public expenditure worldwide steel will be in an upcycle for theforeseeable future.

Dear Stakeholders

I write to you at the close of one of the rarest and challenging yearsin recent history. Starting as a health hazard the COVID-19 pandemic was quick tosnowball into a once-in-a-century economic and humanitarian crisis that affected tens ofmillions of lives worldwide.

While the global economic losses are pegged at around US$ 90 trillionwe must also take cognisance of the losses that cannot be accounted for. We stand insolidarity with all those who were adversely impacted.

Human spirit continues to prevail

In retrospect I find FY 2020-21 to be a tribute to the indomitablehuman spirit in the truest sense. Humankind rallied together at a scale perhaps never seenbefore to lend a helping hand to those in utmost need and work through the crisis. Aquicker-than-usual vaccine rollout large-scale inoculation drives and a fairlystreamlined economic policy dissemination have supported the global economy to a largeextent. Together these have helped us reach a modest stage of revival albeit withsizable divergence in recovery rates between developed and developing economies.

Closer home India grappled with the vagaries of the pandemic at itsonset and peak. However the way the Indian government responded with prudence iscommendable considering the responsibility of the lives and livelihoods of 1.3 billionpeople in their hands. The consecutive lockdowns in the first quarter of FY 2020-21 werereally effective in controlling the pandemic spread.

As the situation gradually began to ease the government was quick tointroduce enabling fiscal and monetary policy measures which in conjunction with pent-updemand led the road to recovery and positive GDP growth from the Q3 FY 2020-21 onwards.

Building back with steel

As the wider world including India gets into the recovery mode steelis set to play a key role. Infrastructure will continue to act as an economic multiplierand with massive public expenditure worldwide steel will be in an upcycle for theforeseeable future. As an affordable reliable and infinitely recyclable material steelwill also help build a future that is responsible and sustainable.

In India the outlays in the recent Union Budget together with theNational Infrastructure Pipeline the Housing for All scheme and specific rail projectsaugur well for the steel industry. The Production-Linked Incentive (PLI) scheme forspecialty steel is a unique and welcome move with multiple benefits includingself-reliance and favourable trade balance. It will also bring best-in-class steelmakingtechnology to India. I can say confidently that the call for Aatmanirbharta(self-reliance) will be serviced at length by the steel sector among others.

At JSPL we are equipped and geared to be a part of this drive forgrowth of infrastructure of our country.

A year that reinforced our strengths

At JSPL FY 2020-21 was our best year in recent times. We achievedrecord revenue operating profit and net profit powered by our market presence stringentcost measures and significant deleveraging of our balance sheet. We have grown our steelproduction by 55% in the past three years with the available capacity. Through the yearwe operated without carrying any excess inventory with a nimble-footed market strategy.Above all we delivered on all our stakeholder commitments 0; our employees wereretained our vendors paid on time and our debt serviced. At JSPL we have always believedin ‘Nation First'. So when the country was facing a shortage of oxygen duringthe second wave of the COVID-19 pandemic we were among the first to supply Liquid MedicalOxygen to 12 states across the country even at the cost of reducing our steel production.Only when the country breathed easy we heaved a sigh of relief.

A positive turnaround that continues to deliver

I am certain that many of us are aware of the financial standing JSPLhad until a few years ago. Today we are easily the company with a best-in-class balancesheet. This was done through focused and concerted efforts by our Board the Managementand our employees. Our deleveraging drive continued to service and retire debt through thepast fiscals and in FY 2020-21 our net debt levels at a consolidated level have declinedto

Rs 22146 crore. Naturally this has also contributed to enhanced netprofits with a growth of more than 10x from year-ago levels. As we go forward ourefforts at deleveraging will continue and in the near future we expect to become anet-debt free steelmaker.

Confident strides towards JSPL 2.0

Apart from our focus on deleveraging we plan to further expand ourcapacities and sweat our existing assets to chart our next growth phase. We are set todouble our capacities at Angul Odisha to touch 12 MTPA complete with a new blastfurnace DRI plant and Steel Melt Shop. We expect the commissioning of the blast furnaceto take place towards the end of December 2023. Taking advantage of the learnings of thepast we have established two tenets that will act as our guardrails while pursuinggrowth. These include keeping our net debt to EBITDA under 1.5x at all times andmaintaining ESG at the forefront of everything we do. Through this initiative we willensure that our commitments are at serviceable levels and whatever we do is better forIndia and the world in all senses. At JSPL our policies and processes are aligned withthe global decarbonisation drive and hold the unique feat of manufacturing 40% of oursteel through the more sustainable and circular EAF route. We continue to mainstreambest-in-class practices from around the globe in our operations and supply chain andexpect to conduct ourselves in a way that gives back more than we take. Similarly for ourpeople and communities we will continue to drive initiatives that create positive impact.

Ahead with ambition

Keeping with the ethos of Shri O. P. Jindal our Founder Chairman wehave always strived to set our bar high to pursue meaningful growth that can support thenation. As we direct and execute our next wave of growth through capacity expansion weintend to service India's current and future need for special steels. We willcontinue to pioneer innovations that cater to the dynamic needs of our customers in Indiaand around the globe consolidating our position as a major steelmaker. While doing thiswe will continue to deliver on our investor value proposition by thoroughly balancinggrowth and sustainability. Before I conclude I must thank the employees of JSPL who havelent their unconditional support in re-energising JSPL and giving us the winning edge. Iwould also like to express my sincere gratitude towards our lenders investorscommunities regulators customers and every other stakeholder who continue to reposetheir faith in us. Your invaluable trust will encourage us to move forward towards ourambition.

Sincerely
Naveen Jindal

.