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 2019-20.
In the three months in question, JSPL registered a net loss of INR 870 million ($12.17 million) compared to a net profit of INR 1.1 billion in the same period of the previous financial year. JSPL’s turnover increased by three percent to INR 99.5 billion ($1.4 billion), while its EBITDA fell by five percent to INR 21.7 billion ($303.75 million), both compared to the same period of the previous year.
The company’s crude steel production in the first quarter amounted to 1.85 million mt, up 12 percent, while its steel sales increased by 14 percent to 1.84 million mt, both on year-on-year basis.
JSPL stated that steel demand in India remains robust in the long term supported by government spending on infrastructure, housing, railway and water projects as well as increased outlays to back consumption-based growth. Post monsoon season, JSPL expects demand for long products to grow at a faster pace, as construction activity returns to normal.
“Recent initiatives by the government towards increasing liquidity in the market as well as any steps taken to safeguard against imports at predatory prices, especially from free trade agreement countries, could propel steel demand for domestic manufacturers,” the company statement said.