The steel major Jindal Steel and Power Limited (JSPL) has recorded its second highest quarterly production of crude steel at 2.01 million tonnes (mn t), SteelMint learned from the company’s recent BSE filing. The previous high was 2.07 mn t in Q4 FY ’21.
The production volume was up 20% year-on-year (y-o-y) compared to 1.67 mn t in the year-ago period. However, the same was down 7% month-on-month (m-o-m) as against 0.69 mn t in May ’21 respectively.
Other major highlights:
Domestic sales up by marginal 3% in Q1 FY ’22-The sales volumes went up by 3% in Q1 to 1.61 mn t as against 1.56 in corresponding period last year (CPLY).
The revived focus in the domestic market by mills in July ’21 had gradually improved sales in the country in Q1 FY ’21. Meanwhile, the severity of second wave of Covid-19 in India only led to a decent growth over CPLY in Q1 of the current fiscal.
Meanwhile, sales volume was 0.55 mn t in Jun ’21 against 0.49 mn t, marking a growth of 12% on a monthly basis.
Export sales at 34% of total sales-Demand in the overseas market was robust with Indian mills focusing on the countries in the Middle East, Gulf and European Union which has led to exports at 34% of total sales equivalent to 0.547 mn t in Q1. Further sporadic lockdown in the domestic market opened gates for more exports during this period.
However, the export volumes were 40% down from 0.905 mn t (58% of total sales) in Q1 of previous fiscal.
In June ’21, the exports stood at 44% of total sales volumes or 0.243 mn t, compared with 0.250 mn t in the preceding year. There is about 150,000 t of inventory stuck at ports due to the weather-related logistical bottlenecks as per the company’s press release.
Outlook
The company is looking forward to achieve the FY’22 production guidance on the back of solid performance of Q1 FY ’22. Mr V.R. Sharma (Managing Director, JSPL) said,“We aim to produce 8.0-8.5 mn t of steel in FY ’22 in line with our core philosophy of nation building and working towards a self-reliant India. We also aim to reduce our overall debt to INR 9,900 crore by the end of this financial year.”
Also, the recovery and growth prospects majorly from the green energy, infrastructure and the shift towards electric vehicles should also open new avenues for improved sales and boost production in upcoming quarters.
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