JSPL sales increase 8% yoy to 5.9 lakh tonnes in Feb 2022; Stock rises

10 Mar 2022 , 10:11 AM

Jindal Steel and Power (JSP) stocks trade higher on Thursday’s session as it continues to post robust Steel sales in February 2022 with volumes up 8% yoy to 5.90 lakh tonnes (compared to 5.47 lakh tonnes in same period prior year).

“Sales would have been higher if not for limited rake availability in the eastern part of the country. Railway Rake availability issue is not yet fully resolved, hampering Company’s sales efforts”, said company in a regulatory filing.

JSP’s steel production stood at 6.57 lakh tonnes in February 2022 which was modestly higher than previous year (+1% yoy). Exports contributed 24% to the sales volumes.

“The World has started feeling the heat of the unfortunate Russia- Ukraine conflict. Brent & energy prices are skyrocketing due to the full scale war in Eastern Europe. Input costs for Steam coal, Coking Coal and Ferro alloys are witnessing substantial rise which has resulted in higher steel prices.

While we hope and pray for faster resolution of the conflict, it will take at least six months for markets to stabilize post war. Higher input costs should therefore result in continued rise in steel prices as the industry grapples with containing cost pressures,” said Mr VR Sharma, Managing Director, JSP in a statement.

At around 10:15 AM, Jindal Steel & Power was trading at Rs448.80 apiece down by Rs0.9 or 0.2% on the BSE.