JSPL records highest ever production run rate in India of over 6MTPA in Jan’19

JSPL records highest ever production run rate in India of over 6MTPA in Jan’19

Agency News

New Delhi, Feb 2 : Jindal Steel and Power Limited (JSPL) Standalone Steel production rose 26 per cent YoY to 1.22 million tonnes against 0.97 million tonnes in third Quarter FY 2018, the company said on Saturday.

Standalone Steel sales during 3QFY19 increased to 1.20 million tonnes, up 28 per cent YoY, on the back of steady ramp up at Angul. On back of Angul ramp up, JSPL India clocked its ever-highest Steel production run rate of over 6MTPA in the month of January 2019.

The quarter ended December’ 2018 saw Steel sector grappling with falling prices and decline in Sales volumes. With rhetoric on prices in China falling, there was reluctance in the consumers to build any inventory during the last month.

Volumes were also impacted by a short period of stocking in the last few weeks of the previous quarter, which saw an upsurge in prices that was short-lived.

The revenues for JSPL Standalone came in at Rs 6,745 crore, up 58 per cent YoY, supported by higher realizations.

Aided by higher efficiency and better product mix strategy against increasing raw material costs, JSPL Standalone maintained Earnings before interest, tax, depreciation and amortization (EBITDA) margins of 22 per cent, similar to previous quarter even in a price fall environment.

JSPL Standalone reported EBITDA of Rs 1,480 crore, up 61 per cent YoY, and Profit After Tax of Rs 177 Crore as compared to a loss of Rs 74 Crore in 3QFY18.

Non- availability of coal remains to be the biggest challenge for independent power producers, including JPL, in ramping up production. The Company generated 2,609 units in 3QFY19 as compared to 2,427 units in 2QFY19, 8 per cent QoQ increase.(UNI)