JSPL steel production rises 31% yoy to 13.71 lakh tonnes between April - May 2021, sales rise 7% yoy

JSPL highlighted that steel sales also increased by 7% Y-o-Y to 10.58 lakh tonnes (April 5.59 lakh tonnes and May 4.99 lakh tonnes).

Jun 08, 2021 01:06 IST India Infoline News Service

Jindal Steel & Power Limited (JSPL), continued to report strong production so far in FY22. The company's steel production increased by 31% y-o-y to 13.71 lakh tonnes in Apr-May 21 (April 6.81 lakh tonnes and May 6.90 lakh tonnes) as compared to 10.44 lakh tonnes in the same period last year.

JSPL stated that as the country grapples with the second wave of COVID-19, The Company’s firm belief in putting human lives ahead of economic gains has resulted in the diversion of oxygen towards life-saving measures, impacting production. JSPL has supplied close to 3500 tonnes of Liquid Medical Oxygen (LMO) to date. With the COVID-19 situation improving, we remain confident of achieving the FY22 production target of 8.0-8.5mt.

VR Sharma, Managing Director, JSPL said, "We at JSPL are very concerned about the health and well-being of citizens across the country. On the call made by the Ministry of Steel, Govt. of India, the entire steel industry came forward to supply Liquid Medical Oxygen (LMO) to various states. JSPL received 3500 tons capacity of empty tankers and all of these tankers were filled with Liquid Medical Oxygen by JSPL. We compromised our steelmaking capacity but our corporate philosophy of keeping "People First" is paramount for us."

In the regulatory filing, JSPL highlighted that steel sales also increased by 7% Y-o-Y to 10.58 lakh tonnes (April 5.59 lakh tonnes and May 4.99 lakh tonnes). However, a slowdown in domestic construction activities due to COVID-19 and logistical challenges faced owing to congestion at ports due to adverse weather conditions resulted in sales growth lagging production growth. JSPL continues to take measures to offset the impact of a slowdown in domestic demand by exporting in lucrative global markets. Exports accounted for 21% of sales volumes in April, with the share rising further to 36% in May.

At around 1.04 pm, JSPL was trading at Rs401.05  per piece up by 0.9% on Sensex.

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