JSPL swings into black, posts Rs 2,432-crore net profit in December quarter
JSPL swings into black, posts Rs 2,432-crore net profit in December quarter

Steelmaker Jindal Steel and Power Ltd (JSPL) on Thursday posted a consolidated net profit of Rs 2,432.20 crore for the quarter ended December 2020, mainly on account of increased income.

The company had recorded a net loss of Rs 257.36 crore during the same quarter a year ago, JSPL said in a BSE filing.

During the quarter under review, its total income jumped to Rs 10,898.70 crore, as against Rs 7,526.28 crore in the October-December quarter of 2019-20, up about 45 per cent.

JSPL's total expenses were at Rs 7,878.86 crore, compared to Rs 7,767.37 crore earlier.

On a standalone basis, the company reported a net profit of Rs 2,225.60 crore as against Rs 96.93 crore in the year-ago quarter.

Its standalone income during October-December 2020 was at Rs 8,739.37 crore, as against Rs 6,640.26 crore a year ago. Expenses reduced to Rs 5,924.66 crore, from Rs 6,492.64 crore.

In a separate statement, the company said "the quarter ended on December 31, showed recovery signs for the entire steel industry in India with both utilization levels and domestic demand rising month on month. However, the industry continues to struggle with raw material scarcity amplified by exponential rise in domestic and international iron ore prices." During the quarter, the company's steel production in India was at 1.93 million tonnes (MT) as against 1.61 MT in year-ago period. The output of pellet was at 1.85 MT, down from 1.80 MT earlier.

JSPL sold 5.43 MT steel in October-December, compared to 4.76 MT in the corresponding quarter of 2019-20.

JSPL further said its subsidiary Jindal Power Ltd (JPL) has been declared the successful bidder for a block of Gare Palma coal mine in Chhattisgarh.

"The Ministry of Coal has declared JPL as the successful bidder for Gare Palma IV/1 coal mine. JPL won an auction for Gare Palma IV/1 coal mine at 25 per cent bid premium of the representative price.

"The mine has peak rated capacity of approx 6 MTPA. The mine should further strengthen JPL's raw material security and help reduce costs. The company currently awaits the Vesting orders for the mine," it said.

The company's Chirodzi mine in Mozambique produced 872 KT ROM (kilo tonne run of mine), up 36 per cent year-on-year in the third quarter. Despite lower realisations on account of falling coking coal prices, the mine reported EBITDA of USD 0.38 million in the said period.

In South Africa, Kiepersol mine produced 146 KT ROM of coking coal, a rise of 42 per cent over the year ago production. The mine reported EBITDA of USD 1.8 million.

In Australia, the company said "both Wongawilli and Russell Vale mines continue to remain under care and maintenance." In the month of December 2020, the development application for the Russell Vale revised preferred underground expansion project (UEP) has been approved by the Independent Planning Commission of NSW (IPC), subject to certain conditions. Environmental Protection and Biodiversity Conservation (EPBC) referral is in process, it added.

Part of the OP Jindal Group, JSPL has a presence in steel, power, mining and infrastructure sectors.

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