India’s Jindal Steel & Power Limited (JSPL) produces 2.35mn mt steel in Q2FY2021 on a consolidated basis, up by 18pc from a year ago quarter and up by 15pc from Q1. The company’s Q2 steel sales rose by 30pc to 2.41mn mt from the prior year quarter amid a revival of domestic steel demand. Sales improved by 16pc from Q1.
JSPL’s Q2 standalone steel production rose by 16pc from a year ago to 1.84mn mt, which is the highest ever quarterly production, according to the company’s press release. Steel production rose by 10pc from Q1. The company’s Q2 standalone sales also hit a quarterly high and was up by 29pc at 1.93mn mt from the prior year quarter and up by 23pc from Q1.
Key highlights of Q2
The company’s Barbil pellet plant recorded highest ever quarterly production of 2.01mn mt in Q2. The plant has an annual installed capacity of 9mn mt. In Q1, the company’s pellets production was 1.87mn mt.
In Q2, JSPL’s steel exports comprised 38pc of the sales volumes at 0.74mn mt.
In July, JSPL agreed to sell its entire stake in Jindal Shadeed Iron and Steel (JSIS Oman) to bring down debt and focus on the domestic market. JSPL Oman has an annual capacity to produce 2.4mn mt steel. The assets had an outstanding debt of Rs5,600 crore (Rs56bn or $760mn) at the end of FY2020. The enterprise value of the deal is over $1bn.