JSW Steel plans to restart production at all the four locations as soon as the Government lifts the lockdown even as the company’s output in March plunged 5 per cent to 3.97 million tonnes against 4.17 mt logged in March last year.

The company had scaled down production on March 25 after the government announced complete lockdown of businesses to fight the coronavirus.

Production of JSW Steel’s flat rolled products in March quarter was down 5 per cent at 2.87 mt (3.01 mt) while that of long products used in infrastructure projects slipped 4 per cent to 0.95 mt (0.99 mt).

The company achieved 97 per cent of revised lower production guidance of 16.50 mt of FY20.

Its steel production in FY20 was down 4 per cent at 16.06 mt (16.69 mt). Flat product production was down 3 per cent at 11.35 mt (11.74 mt) while rolled products were down 4 per cent at 3.72 mt (3.87 mt).

However, it said crude steel production during January and February in aggregate was higher than that of the previous year by 1 per cent. The slowdown in economic activity due to unanticipated breakout of the Covid pandemic and consequent nationwide lockdown in the later part of March led to a sharp fall in production across plant locations, it said.

Gearing for restart

The company could have almost achieved the revised guidance if not for Covid-19, said JSW Steel in a statement on Tuesday.

Meanwhile, the company is making all preparations to recommence operations at all locations on lifting of lockdown in the next few days, it added.

Currently, the company produces steel through four blast furnaces and two corex smelting facilities at Ballari in Karnataka, one functional and one under construction, blast furnaces at Dolvi in Maharashtra, two blast furnaces at Salem in Tamil Nadu and one in Monnet Ispat at Rajghar in Chhattisgarh.

Shares of the company were trading up 5 per cent at about ₹147 at 9.40 am.

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