After six years in the red, Jindal Steel and Power Ltd (JSPL) on Wednesday said it has closed the financial year 2020-21 with a net profit of ₹5,527 crore. The strong rebound in bottomline has been aided by the ongoing upcycle in global steel prices, which is reflected in the uptrend in domestic prices as well.

In the previous financial year, JSPL had reported ₹ 574 crore net loss.

The firm’s annual production of steel including pig iron rose 19 per cent year-on-year to 7.51 million tonnes, while the production of pellets rose by 6.6 per cent to 7.28 million tonnes, JSPL said in a statement.

JSPL’s annual consolidated gross revenue grew by 224 per cent year-on-year to ₹42,745 crore.

“Better export markets during the year resulted in JSPL exports rising by 226 per cent to 2.53 million tonnes in FY21, accounting for 35 per cent of the overall sales versus 13 per cent in FY20,” the statement said.

Also read: JSPL makes prepayment of ₹2462 crore to lenders

Good operational performance, divestment of non-core assets and lower capex have all contributed to JSPL continuing on deleveraging with net debt declining by 38 per cent year-on-year to ₹22,146 crore at the end of the financial year 2020-21. “As a result, JSPL’s balance sheet is now the strongest in the sector,” the statement added.

Annual net loss of the firm’s subsidiary Jindal Power Ltd shot up to 449 per cent to ₹1,258 crore. JSPL recently announced that it will sell its 96.42 per cent stake in the power subsidiary to Worldone Private Ltd, a private company owned by JSPL chairman Naveen Jindal.

“Post JPL divestment, JSPL will transform into a pure play steel company with all its operations in India,” the statement said.

“The divestment will significantly help JSPL reduce emissions improving ESG score, strengthen its balance sheet via debt reduction, shift entire management focus on company’s strong domestic steel business and improve return ratio’s for our investors as we progress towards becoming a net debt-free company,” it added.

In the January-March quarter, consolidated net profit stood at ₹1,901 crore, down 22 per cent from the previous quarter.

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