Despite sluggish domestic demand JSPL reports highest ever steel sales in Q2FY22.
Jindal Steel and Power Limited recorded sales growth of 10% YoY and 32% QoQ to 2.13 million tons during the quarter.
Amidst sluggish domestic demand due to the ongoing monsoon season in the country, India’s largest stainless-steel manufacturer, Jindal Steel and Power Limited (JSPL) report robust growth in sales and production in Q2FY22.
JSPL’s Steel sales volume surged by 10% YoY and 32% QoQ to 2.13 million tons during the quarter, breaching 2 million tons for the quarter for the first time. Exports continued to boost sales with the share of revenue coming from exports rising to greater than 40% in Q2FY22. The share of export revenue stood at 34% in Q1FY22 and 38 per cent in Q2FY21.
Steel production stood at 1.93 million tons in Q2FY22, posting a modest growth of 5% YoY. Inventory levels continued to decline as sales volume surpassed production for the third consecutive month in September 2021.
Looking ahead, the Naveen Jindal-led mill, once India’s biggest steelmaker by market value, is set to make fresh investments for growth, after aggressively slashing its debt levels by more than 60% since 2018. The company plans to spend USD 2.4 billion over the next six years to ramp up capacity, joining its peers in announcing massive expansions as a recovery from the pandemic boosts demand.
These expansion plans are driven by expectations of robust consumption as India aims to invest 100 trillion rupees (USD 1.3 trillion) in infrastructure to boost economic growth and create jobs.
JSPL is a leading Indian Infrastructure Conglomerate with a presence in the Steel, Power, and Mining sectors. With an investment of approximately USD 12 billion (Rs 90,000 crore) across the globe, the company is continuously scaling its capacity utilization and efficiencies to contribute towards building a self-reliant India.
At 1.12 pm on Tuesday, the stock of Jindal Steel and Power Limited was trading at Rs 422.95, up by 1.09% or Rs 4.55 per share, against a 0.31% gain in the benchmark index. The 52-week high of the company was recorded at Rs 501.60 while its 52-week low is Rs 179.30 on BSE.
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