JSPL reports net profit at Rs 3,426 crore for March quarter

Jindal Steel and Power Ltd (JSPL) said on Wednesday its profit after tax moved up to Rs 3,426 crore in the quarter ended March versus Rs 282 crore in the same period of previous fiscal.

Rising steel prices, improved mix and higher volumes helped the company to report record earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 4,884 crore.

However, a sharp rise in iron ore prices coupled with increase in prices of electrodes, alloys, refractories and other such raw materials continued to exert downward pressure on margins.

Still, revenue from operations totalled Rs 10,083 crore in Q4 FY21 as compared to Rs 5,930 crore in Q4 FY20. The steel production totalled 2.07 million tonnes and sales amounted to 1.91 million tonnes.

JSPL said it is set to double its steelmaking capacity at Angul in Odisha to 12 million tonnes per annum.

At the same time, solid operational performance, divestment of non-core assets and lower capex have contributed in the company continuing on path of deleveraging with net debt declining from Rs 35,919 crore in FY20 to Rs 22,146 crore in FY21.

"As a result, JSPL's balance sheet is now the strongest in the sector. The company in its endeavour to become net debt free made pre-payment of Rs 2,462 crore in early May," it said.

Net debt has declined to Rs 10,589 crore on standalone basis and Rs 19,332 crore on consolidated basis as on May 11.

Strengthening balance sheet coupled with strong upcycle witnessed in steel prices have led to JSPL's credit rating enhancement to A from BBB-minus within a span of four months, it said.

( With inputs from ANI )

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