JSPL PAT jumps manifold to over Rs 1,900 crore in Q4; output at 2.07 MT

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Jindal Steel and Power on Wednesday reported manifold jump in its consolidated profit after tax (PAT) to Rs 1,900.51 crore during the fourth quarter ended March 2021, mainly on account of higher income.

Its "net profit after tax from continuing operation" in the year-ago quarter was at Rs 82.13 crore, JSPL said in a BSE filing. During the quarter under review, JSPL said its total income also soared to Rs 11,903.59 crore as against Rs 6,819.73 crore a year ago.

The company's total expenses stood at Rs 8,082.92 crore in the March 2021 quarter as compared to Rs 6,603.65 crore in the corresponding period of the preceding fiscal. On a standalone basis, Jindal Steel and Power Ltd (JSPL) has reported a PAT of Rs 3,425.98 crore during the January-March quarter.

The company had clocked Rs 281.74 crore standalone PAT in the year-ago period. Its total income increased to Rs 11,083 crore from Rs 5,930.31 crore a year ago.

In a statement, JSPL said improved performance across steel, power and overseas mining operations in the fourth quarter of 2020-21 have resulted in reporting the highest ever consolidated gross revenue of Rs 13,190 crore. "(During January-March 2021) strong operational performance coupled with better pricing environment have led to consolidated EBITDA hitting a new record of Rs 5,287 crore. Higher EBITDA and declining interest costs have led to a net profit of Rs 1,901 crore," it said.

During the full FY 2020-21, JSPL recorded a consolidated PAT of Rs 5,527 crore as against the loss of Rs 574 crore in FY 2019-20. JSPL said, "Company's unflinching focus on strengthening the balance sheet has resulted in consolidated net debt declining further by Rs 3,475 crore in the fourth quarter and Rs 13,773 cr in (full) FY21. As of March 2021, JSPL reported consolidated Net Debt of Rs 22,146 crore".

During the March quarter, the company produced 2.07 million tonne (MT) of steel, while it sold 1.91 MT. In the entire fiscal, it produced 7.51 MT of the metal and sold 7.28 MT.

In Mozambique, the company's Chirodzi mine produced 811 KT ROM (kilo tonne run of mine), up 37 per cent year-on-year – in 4Q FY21. In FY21, it produced 3.22 million tonnes, up 29 per cent compared to FY20. In South Africa, during January-March 2021, Kiepersol mine produced 135 KT ROM, registering a year-on-year rise of 41 per cent.

JSPL said its Wongawilli and Russell Vale mines in Australia continue to remain under care and maintenance. It further said its core focus right now is to become a net debt-free company. Thereafter, the company will be embarking on a journey to expand its profitability and volumes via the expansion of the Angul plant from 6 MTPA to 12 MTPA, taking JSPL's overall steel capacity to 16 MTPA in India. It further said its core focus right now is to become a net debt-free company.

"While the slowdown in construction activities within the country and diversion of oxygen supply has resulted in lower production and sales recently, strong export markets due to change in Chinese policies and ongoing vaccination drive involving country's broader population bode well for steel demand and pricing outlook in FY22 and beyond," JSPL said.

Shares of the company ended 4.19 per cent down at Rs 456.70 apiece on BSE.