New Delhi [India] : Jindal Steel and Power Limited (JSPL) saw its consolidated net profit grow almost three-fold on annual basis to Rs 2,584.22 crore during the second quarter ended September 30, 2021. According to a statement issued by the Indian steelmaker, JSPL reported a standalone profit after tax (PAT) of Rs 2,711 crore. The consolidated net debt was reduced to Rs 11,164 crore in the second quarter of the financial year FY22 from Rs 15,227 crore in June 2021. As per the company statement, notwithstanding sluggish domestic demand due to ongoing monsoons in the country, JSPL reported robust growth in sales and production in Q2FY22. JSPL further stated that its sales volume surged 32 per cent quarter on quarter (QOQ) and 10 per cent year-over-year (YOY) to hit a record of 2.13 million tonnes during the quarter. Q2FY22 also marked the first time JSPL steel sales have crossed 2 million tonnes quarterly volumes, said the company. It further stated that the company continues to benefit from buoyant export markets as the share of exports in overall volumes increased to more than 40 per cent in 2QFY22 compared to 34 per cent in the first quarter of FY22 (38 per cent in Q2FY21). Exports have become a key channel of sales for the Company, especially in times of subdued domestic demand, said JSPL in its statement. The first half of FY22 further showcases the company’s operational flexibility under challenging market conditions helping the company to post a solid production growth of 12 per cent YoY and sales growth of 7 per cent YoY. “Resilient operational performance in 1HFY22 and anticipated pick up in domestic construction activities in 2H gives the confidence to achieve our full-year production target of 8.0-8.5 million tonnes,” read JSPL’s statement. It further stated that JSPL has recently received an additional 1MTPA Consent to Operate (CTO) for the Angul Blast furnace (CTO of 4.25mtpa from 3.2mtpa currently) raising our capacity to 9.6MTPA. “JSPL has been declared as the preferred bidder for Kasia Iron Ore Mine in Odisha. Kasia Mine has a large geological resource of 278 million tonnes of iron ore and it consists of an average Fe grade of approx. 62.5 per cent. Kasia is an operational mine having an Environmental Clearance (EC) of 7.5 MTPA. The mine is only 17 km away from JSPL’s Barbil pellet plant. Iron ore from Kasia will significantly boost JSPL’s raw material security; especially as the company makes steady progress on its plans to raise its pellet capacity to 21mtpa (from 9mtpa now) by FY24 and steel capacity to ~16mtpa (from 9.6mtpa) by FY25,” said the statement. According to JSPL’s statement, the company is also working towards setting up a slurry pipeline between Barbil and Angul (200kms), which will not only help reduce logistics costs but also lower carbon and dust emissions associated with raw material transport through road. “Conclusion of Jindal Power Limited (JPL) divestment (accounted as asset held for sale) will result in Net Debt declining further by INR3,015 Cr, taking JSPL a step closer to its vision of becoming a Net Debt-free company by FY23- a rare feat in the Steel sector. The divestment has received strong backing from the shareholders’ approving the transaction in the EGM held on 3rd September 2021. The company is currently in the process of getting relevant approvals from JSPL as well as JPL lenders and expect the divestment to conclude in FY22 itself,” added JSPL in its statement.
