Indian steelmaker Jindal Steel and Power Ltd (JSPL) has issued its consolidated financial results for the first quarter ended June 30 of the financial year 2016-17.
In the three months in question, JSPL registered a net loss of INR 12.39 billion ($186.13 million) compared to a net loss of INR 5.59 billion in the same period of the previous financial year. JSPL’s EBITDA declined to INR 9.84 billion ($147.75 million) compared to the EBITDA of INR 10.09 billion recorded in the same quarter of the previous year.
According to JSPL's statement, the Indian government’s growing focus on usage of steel for buildings, flyovers and bridges is likely to result in a spurt in demand for structural steel, which would benefit JSPL in particular in view of its market leadership in the segment. Meanwhile, the introduction of antidumping duties on certain steel products will restrict imports and thus enable local producers achieve a higher share of the domestic market. JSPL believes that demand will grow five percent during the third and fourth quarters of the given financial year and, with the increased steel demand, prices are expected to rise during the coming months.