India’s leading steel mill – Jindal Steel & Power Ltd (JSPL) today announced its Q3 FY’21 results in an investor’s conference call.
During 3Q FY’21, JSPL Standalone reported highest ever steel production volumes (incl. pig iron) at 1.93 mn t (up 20% y-o-y basis) and sales of 1.87 mn t (up 12% y-o-y basis). As domestic demand continued to recover, the company raised its sales within India.
Major highlights of Q3 FY’21 are as follows:
1.Company’s EBITDA witnessed significant growth-
Company’s EBITDA jumped by around 189% to INR 3,908 Cr in Q3 FY ’21 in comparison to INR 1,352 Cr in a similar time of previous year. However, on a quarterly premise, the same increased by 60% as against INR 2435 Cr. in Q2 FY’21.
2.Company continues to maintain its guidance for FY’21-
JSPL is expecting to achieve its production guidance of 7.4-7.5 mn t for FY ’21
3.Steel exports increased by 18% in Q3 FY’21 –
JSPL exports increased by 18% y-o-y to 0.387 mn t in Q3 FY ’21 contributing 21% to the total sales volumes. However, on quarterly basis the same went down by 21 %
4.Company becomes “regular supplier” of rails-
JSPL became India’s first private company to get the “Regular Supplier” status from Indian Railways to supply 60kg 880 grade (90UTS) rails.
5.Production and sales of pellets-
During Q3 FY’21, pellet production increased 3% on yearly basis. External sales of pellets however reduced to 0.40 mn t down 38% y-o-y basis on higher internal consumption as steel volumes continue to ramp up.
6.Less likely to face iron-ore shortage –
“JSPL is less likely to face any iron ore shortage in domestic supplies,”said Mr. V R Sharma – Managing Director in an investor conference call today. The company is sourcing ore from its captive Tensa mines. Iron ore inventories at Sarda Mines are currently around 4-4.5 mn t and will be consumed in the next two quarters. In addition to it, the company is also sourcing ore from OMC and NMDC mines in Chhattisgarh.
7.Surge in steel prices-
Higher raw material cost resulted in a hike in steel prices said the JSPL management in a recent investor’s conference call. After remaining largely range-bound in the previous quarter, Q3 FY’21 saw long steel prices rising alongside flat steel prices on the back of increased raw material prices.
8.Company had made coking coal bookings till May-
Company enjoyed last quarter when coking coal prices were at $90-100/t Fob basis which was around one month back. Thus, stocks are available till May. Also, the company plans to source coking coal of around 2-2.5 mn t from outside and balance 4 mn t from its own mines which are located in Mozambique, Australia and South African since these mines are maintaining good stocks.
9. JPL mines likely to resume shortly-
As per recent investors’ call, JPL mines are expected to resume in six to eight months down the line.
10. Reduction in the cost of production –
Company is aiming to reduce the cost of transportation of pellets and iron ore to INR 150/t from around INR 1200-1500/t at present. The new pellet plant and slurry pipeline will help to cut the transportation cost.
Leave a Reply