Indian steelmaker Jindal Steel and Power Ltd (JSPL) has issued its consolidated financial results for the second quarter ended September 30 of the financial year 2016-17.
In the three months in question, JSPL registered a net loss of INR 7.47 billion ($110.78 million) compared to a net loss of INR 9.86 billion in the same period of the previous financial year. In the second quarter, JSPL’s turnover decreased by 1.47 percent year on year to INR 46.66 billion ($691.96 million), while its EBITDA declined to INR 8.48 billion ($125.77 million) compared to the EBITDA of INR 10.02 billion recorded in the same quarter of the previous year.
According to JSPL's statement, during the quarter in question its crude steel production increased by 13 percent year on year to 1.16 million mt. In the same quarter, JSPL sold 1.08 million mt of steel, registering a growth of 12 percent year on year.
JSPL stated that, although the prices of coking and thermal coal have increased dramatically, its impact on the company will be much less compared to its competition as 70 percent of steel produced by JSPL is from direct reduction iron (DRI), which uses domestic coal. With the general increase in prices of steel, JSPL, with its relatively low average cost, is expected to improve its steel business margins.