Indian steel major – Jindal Steel & Power (JSPL) has recently announced its quarterly results. It achieved 1.84 mn t of crude steel output in Q2 FY ’21. This is the company’s best-ever quarterly production volume, SteelMint learned from the company’s press release.
The company achieved the highest ever sales volumes of 1.93 mn t in Q2, rising by 24% on the quarter and 30% CPLY. The key highlights of the investor conference call conducted today are listed below:
1.Eyes crude steel output of 8 mn t in FY’22- India’s leading steel mill – Jindal Steel & Power (JSPL) is planning to ramp up its crude steel output to around 3.8 mn t in H2 FY’21.The company has achieved an output of 3.5 mn t in H1 FY’21. Thus, the company is aiming for output of 7.3-7.5 mn t pa in FY’21 and 8 mn t pa in FY’22, company officials mentioned in the investor quarterly conference call.
2.Plans to cut steel exports to 20% in Nov’20- Jindal Steel & Power is planning to cut down its steel exports to 20% share of total sales. Revival in domestic demand has resulted in a lowering of the share of exports. During the lockdown, the company was exporting a 70-72% share of total sales. Company officials also highlighted that they will primarily export finished steel instead of semis exports. The company exported 0.74 mn t of steel products in Q2, accounting for 38% of the total sales volume.
3.Ramp up in DRI production- Company in its investor’s conference call mentioned that currently, DRI production is at 4,000t per day which will be ramped up to 6,000t per day This will result in cheaper sponge by 5% as compared to conventional sponge power plants.
4.Issues with Guali iron ore mines – In the Guali iron ore block that steel major JSPL bagged from R.P. Sao at the auctions, and where operations are yet to resume due to a land boundary and mine mapping dispute. Official highlighted that they have already raised there concerns to state government if they can check the technical aspects, or else the block may come up for rebidding. The company plans to participate in more upcoming mine block auctions.
5.Expect to resume iron ore dispatches from Sarda mines – Company officials are of the opinion that the suspension order on all dispatches from Sarda Mine’s Thakurani B mine may be lifted today after the release of orders. Notably, JSPL has nearly 7.5 mn t stocks still lying at SMPL’s premises.
6.Plans to build a slurry pipeline to lower transportation costs: Company has received approval on its slurry pipeline layout, officials have highlighted in the quarterly investor conference call conducted today. This would lower miner’s iron ore transportation cost from Odisha mines to Angul plant to INR 1,100/t, they highlighted.
7.Completed forward bookings of coking coal till Feb’21- Coking coal prices have come down sharply and touched $104/t FoB levels.The company has done forward booking till Feb’21. If coking coal prices started to increase, the company can reap cost benefits.
8.EBITDA jumped by 33% in Q2 – In Q2 company’s standalone EBITDA stood at INR 2,435/t Cr higher by 23% against INR 1,828/t Cr in the previous quarter.
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