India’s Jindal Steel and Power Limited (JSPL) has reported a consolidated net profit of INR 3,060 million ($40.31 million) during fourth quarter (January-March 2020) of fiscal 2019-20, according to a statement issued by the company on Tuesday, while the company has a loss at the same period last year. Standalone net profit has been INR 2,820 million ($37.1 million) in Q4 and INR 6,180 million ($81.4 million) over the whole fiscal year.
According to the company, JSPL reduced its net debt during the fiscal by INR 4.37 billion ($577 million) at current exchange rate.
“The year gone by saw the company better not only on volume front but also on the product mix which made it more resilient and nimbler for the uncertainty and difficult times which wrapped the world during the latter part of the quarter,” JSPL said in the statement.
JSPL's steel production (including pig iron) in India was 1.54 million mt in Q4, down by 2 percent year on year, which was a pretty good result, taking into account sharp drop in local steel demand in Q4 due to pandemic, according to sources. The whole year production reached 6.3 million mt, indicating a 13 percent increase compared to the previous year. “JSPL has been nimble and agile in these uncertain times, changing its business model to market and sell its steel products in overseas markets more than domestic markets,” the company stated in the report, explaining the impact of covid-19. The share of export sales has increased sharply in March and reached 70 percent in April-May. “On the raw material side, the Company envisioned supply chain disruptions well before the actual lockdown was announced, thereby accumulating raw materials like coking coal and iron ore to tide over any anticipated disruptions,” the company stated.
JSPL expects improvement of steel demand in India after the lift of the national lockdown, while saying that domestic demand for long products can revive faster than consumption for flats. The export share is expected to decline to 50 percent in June.
$1 = INR 75.90