JSPL is aiming to lift crude steel output at its India unit by 11% to 7mn t in FY ’21 compared with 6.3mn t in FY’20 as it continues to ramp up to rated capacity, company executives said at an analyst call. It expects output of 1.8 mn t in Q2, 1.9 mn t in Q3 and 2 mn t in Q4 FY’21.
Jindal Steel & Power reported an 8% q-o-q growth in the India unit’s steel production in Q1 FY ’21 at 1.67mn t despite the pandemic-related lockdown in April. Sales volume increased to 1.56 mn t in Q1 FY ’21, up by 12% from 1.40 mn t in Q4 FY ’20 on the back of higher export volumes.
JSPL’s exports hit an all-time high in Q1 FY ’21- The company exported 0.9 mn t, accounting for 58% of total sales volumes. In Q4 FY ’20, the company exported value-added plates to Europe, Middle East, and Egypt. Wire rods and billets exported to South East Asia and China. The proportion of exports in total sales volume will likely drop in Q2 FY ’21.
Exports could be around 0.6 mnt out of the total sales of 1.8 mn t- JSPL expects acceleration in domestic new orders from defence and railways sectors. JSPL recently received orders to supply head-hardened rail for two Indian metro rail projects.
Significant growth in PAT- JSPL has reported a 79% increase in its profit after tax (PAT) for its Indian operations at INR 505 crores compared with INR 282 crores in Q4 FY ’20. Profits were at INR 224 crore in Q1 FY ’20.
Iron ore sourcing- JSPL is currently sourcing around 20,000-30,000t iron ore fines (Fe 59-61%) daily from stockpiles at Sarda mines and blending it with high-grade ore of NMDC and OMC.
Planning to increase power plant capacity in two years- JPL (Jindal Power Limited) is planning to increase its power generation capacity to 3,400 MW from 1,000-1,200 MW at present. The strategy hinges on acquiring coal blocks via the auction route over the next two years. JPL has achieved a net profit of around INR 39 Cr on a standalone basis and around INR 55 Cr on a consolidated basis in Q1 FY’21.
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