Mar 07, 2013, 03.42 PM | Source: CNBC-TV18
Jindal Steel and Power has not been able to increase its power production and sales due to lack of new transmission lines, Sushil K Maroo Director & Group CFO says.
“ We are largely into long products and so the price increase comes in due to increase in many input cost. There is a rise in transportation cost and the other iron ore prices are also going up ”
- Sushil K Maroo (Director )
"Hopefully, in a year or two more transmission lines will come up and this constraint will be taken care of and we will be able to come back to higher generation on a longer term basis," Maroo said.
The Delhi-based company's current tariff realisation is only Rs 3 per unit. Maroo blamed lower output, plant load factor (PLF) and sales as key reason for the low tariff realisation.
Jindal Steel and Power recently increased its steel product prices by Rs 500-1000 per tonne due to high raw material cost. Maroo said that prices are likely to remain at this level for sometime now, as the steel production and demand has come down recently.
On the company's raw material strategy, Maroo said that they are constantly in search of better raw material linkages. JSPL continues examining large number of companies in Africa, Australia and other regions for coking coal and iron ore linkages.
Below is the verbatim transcript of his interview on CNBC-TV18
Q: Can you take us through the price increases that you have taken for the month of March and what is the quantum?
A: We are largely into long products and so the price increase comes in because of the increase in many input cost. There is a transportation cost rise taking place and the other iron ore prices also going up, the coal prices having its effect because of the depreciation of rupee. The mixture of all these things has led to rise in the steel cost and that is how it has taken place. It is a generalised number, but largely it is more or less in product line-to-product line.
Q: What is the range of the quantum of this price increase? Can you give us exact figures?
A: The quantum is anywhere ranging from Rs 500-1000. It depends on the product line-to-line and how much remains and this is the price rise that has taken place because of the cost-push.
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