JSPL posts consolidated profit at Rs 2,432 crore in Dec quarter

Jindal Steel and Power Ltd (JSPL) said on Thursday it continues to benefit from improving operating and financial leverage with consolidated profit after tax at Rs 2,432 crore in the quarter ended December 2020 versus loss of Rs 257 crore in 3Q FY20.

The strong performance in Indian steel as well as power business in 3Q FY21 helped the company report consolidated gross revenue of Rs 11,704 crore, up 39 per cent year-on-year and earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 4,252 crore as compared to Rs 1,574 crore in 3Q FY20.

"JSPL continues to strengthen its balance sheet with net debt reducing further by Rs 3,289 crore during the quarter (Rs 10,298 crore in 9M FY21)," it said in a statement. As on December 2020, JSPL reported consolidated net debt of Rs 25,621 crore.

During 3Q FY21, JSPL standalone reported highest ever steel production volumes (including pig iron) at 1.93 million tonnes (up 20 per cent year-on-year) and sales of 1.87 million tonnes (up 12 per cent year-on-year).

As domestic demand continued to recover, the company raised its sales within India. This was reflected in declining share of exports for JSPL which fell to 21 per cent versus 38 per cent in 2Q FY21.

After remaining largely range-bound in the prior quarter, on back of increased raw material prices, 3Q FY21 saw long steel prices rising alongside flat steel prices.

Pellet production increased 3 per cent but external sales reduced to 0.4 million tonnes (down 38 per cent year-on-year) on higher internal consumption as steel volumes continue to ramp up.

3Q FY21 also saw JSPL becoming India's first private company to get the regular supplier status from Indian Railways to supply 60kg 880 grade (90UTS) rails.

JSPL is a leading Indian infrastructure conglomerate with a presence in steel, power and mining sectors.

With an investment of 12 billion dollars (about Rs 90,000 crore) across the globe, the company is continuously scaling its capacity utilisation and efficiencies to contribute towards building a self-reliant India.

( With inputs from ANI )