JSPL Q2 loss widens to ₹706.49 crore despite strong performance

Our Bureau New Delhi | Updated on October 30, 2020 Published on October 30, 2020

Jindal Steel and Power Limited reported a consolidated net loss of ₹706.49 crore in the second quarter of FY21. This is higher than the ₹399.31-crore net loss reported by the company in the same period of the last financial year.

But there was an improvement in total income for the quarter, which rose to ₹9,137.43 crore by September 30, 2020-end from ₹7,688.62 crore by September 30, 2019-end.

Net sales from power stood at ₹1,837.86 crore, higher than ₹1,681.12 crore reported in the year-ago period. Net sales from iron and steel stood at ₹7,633.07 crore, also higher than the ₹6,384.59 crore reported in the same period of the previous fiscal.

A company statement said JSPL reported its highest-ever steel production volumes at 1.84 million tonnes (up 16 per cent year-on-year) and sales of 1.93 million tonnes (up 30 per cent year-on-year).

“As domestic demand returned, the company increased its sales within India, reflected in declining export trend in the reported quarter, declining to 38 per cent (compared to 58 per cent in the first quarter of the fiscal). Exports stood at 0.74 million tonnes,” the statement said.

JSPL also said it is interested in the auction of coal mines, which is expected to begin from November 2. “A number of coal blocks offered for auction are located in the States of Chhattisgarh and Odisha. Successful completion of these auctions will bode well for the availability of coal,” the company said.

Commenting on the sale of its asset in Oman, the company said: “JSPL successfully completed the first tranche of the divestment by selling the 48.99 per cent of the Oman subsidiary to the acquirer.”

In June this year, JSPL said that Jindal Steel & Power (Mauritius) Limited has accepted a binding offer from Templar Investments Limited to divest its entire stake in its Oman asset, Jindal Shadeed Iron and Steel Co LLC. The enterprise value of the deal is over $1 billion.

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Published on October 30, 2020
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