India’s Jindal Steel and Power Limited (JSPL) has reported a net profit of INR 24.32 billion ($333.52 million) for the third quarter ended December 31 of the Indian fiscal year 2020-21, due to increased income, compared to a net loss of INR 2.57 billion in the corresponding quarter of the previous fiscal year, according to a regulatory filing by the steel company.
JSPL’s net sales revenues in the third quarter totaled INR 105.34 billion ($1.44 billion), rising by 17.1 percent year on year, while its EBITDA rose to INR 42.52 billion ($583.11 million), compared to the EBITDA of INR 27.02 billion recorded in the corresponding period of the previous year.
For the first nine months ended on December 31, the company has reported a net profit of INR 36.26 billion ($497.26 million), compared to a net loss of INR 6.56 billion in the corresponding period of the previous fiscal year. The company’s net sales revenues in the given period totaled INR 271.08 billion ($3.71 billion) increasing by 14.5 percent year on year, while its EBITDA rose to INR 91.57 billion ($1.25 billion), compared to the EBITDA of INR 50.85 billion recorded in the corresponding period of the previous year.
In the third quarter, the company produced 1.93 million mt of steel, up by 19.8 percent, while its steel sales totaled 1.87 million mt, increasing by 11.9 percent, both year on year. As domestic demand continued to recover, the company raised its sales within India. This was reflected in the declining share of exports in JSPL’s sales, which decreased to 21 percent compared to the same period of the previous financial year. The company produced 5.43 million mt of steel in the first nine months, increasing by 14 percent, while its steel sales in the given period totaled 5.36 million mt, up by 14.7 percent, both year on year.
JSPL stated that the third quarter showed recovery signs for the Indian steel industry with utilization levels as well as domestic demand rising month on month. However, the Indian steel industry continues to struggle with raw material scarcity amplified by the exponential rise in domestic and international iron ore prices.