The quarterly result got a boost from improved performance across steel, power and overseas mining operations in Q4FY21. EBITDA soared 205.60% to Rs 5,287 crore in Q4 FY21 as against Rs 1,730 crore in Q4 FY20. Net debt reduced by Rs 3,475 crore in Q4 FY21 and Rs 13,773 crore in FY21.
The company's core focus right now is to sweat out assets and make JSPL net debt free. Thereafter, the company will embark on a journey to expand its profitability and volumes via the Angul expansion from 6 MTPA to 12 MTPA taking JSPL's overall Steel capacity to c.16 MTPA in India.
In its outlook, JSPL said, Structural changes in China to curb steel exports (removal of export rebate), strong focus on reducing carbon emissions and ongoing geopolitical tensions are likely to provide continued support to current steel upcycle, in our view. India however is currently facing threat from the ongoing second wave of COVID-19, which has turned out to be much severe compared to earlier wave. JSPL remains committed to prioritising human lives in these challenging times and has been diverting oxygen supply to various states (daily run rate has been increased to 120 tonnes recently from 100 tonnes).
JSPL is providing Liquid Medical Oxygen to the states of Telangana, Maharashtra, Andhra Pradesh, Gujarat, Odisha, Chhattisgarh, Madhya Pradesh, Delhi and Haryana. While slowdown in construction activities within the country and diversion of oxygen supply has resulted in lower production and sales recently, strong export markets due to change in Chinese policies and ongoing vaccination drive involving country's broader population bode well for steel demand and pricing outlook in FY22 and beyond. Outlook for Indian steel producers has turned extremely bright in the past year and JSPL's decision to divest power assets (JPL) is in line with our renewed strategy to focus on the company's promising India Steel operations.
JSPL's steel production jumped 34.41% to 2.07 million tonnes (MT) in Q4 FY21 over 1.54 million tonnes (MT) in Q4 FY20. Steel sales recorded a 36.42% growth Y-o-Y to 1.91 MT in Q4 March 2021 as against 1.40 MT in Q4 March 2020.
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.
Shares of JSPL dropped 4.19% to Rs 456.70 on Wednesday, 12 May 2021. The Indian stock markets is closed today, 13 May 2021, on account of Id-Ul-Fitr (Ramzan Id).
Powered by Capital Market - Live News