JSPL posts 30% rise in production and sales up by 25% in December 2020

Mumbai: Steelmaker, Jindal Steel & Power Limited (JSPL) reported a 20% year-on-year rise in production to 19.3 lakh tonnes during the third quarter of FY 21 with December production reaching record high levels of 7.27 lakh tonnes, a rise of 30% yoy.

“We are proud of our dedicated workforce who achieved such an extraordinary increase in the production with existing capacity by way of optimizing various operating parameters without any Capex. We will achieve even greater heights in times to come,” said, V R Sharma, managing director, JSPL.

The company’s production jumped 30% in December to 7.27 lakh tonnes. The company also reported a monthly sales of 7.11 lakh tonnes in December 2020 as against sales of 5.67 lakh tonnes during the same period last year.

JSPL has produced crude steel of 5.44 mnt from year to date of FY21 an increase of 14% YoY implying utilization rates of 84%, analysts said.

“JSPL’s Standalone Steel sales also increased by 12% YoY to 18.8 lakh tonnes in Q3FY21 compared to 16.7 lakh tonnes in Q3FY20,” the company said in a statement.

“We understand strength in domestic sales is driven by rail products, plates as well as a higher proportion of semi finished products. In terms of YoY, domestic sales volumes grew 30% in Dec-20,and year to date basis domestic volumes are down 18%,” said Morgan Stanley in a report on Monday.

JSPL’s integrated steel plant in Angul reported a monthly production of 4.16 lakh tonnes during December and the Raigarh steel plant also reported the production of 3.11 lakh tonnes.

“The company guided for production of around 7.3mnt for F2021, which implies 1.9mnt for the balance of the year (monthly rate of 0.63mnt and utilization rate of 88%). In light of strong Dec-20 production, this appears achievable in our view,” the Morgan Stanley report said.

JSPL’s Steel exports increased by 18% (Y-o-Y) to 3.87 lakh tonnes in Q3FY21 contributing 21% to the total sales volumes.

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