JSPL back in black, posts Rs5,527-cr profit in FY211 min read . Updated: 12 May 2021, 09:14 PM IST
- For the fourth quarter ended March 2021, the company reported a 23 times jump in its consolidated profit after tax to Rs1,900.51 crore
Riding on the current upcycle in global as well as domestic steel prices, Jindal Steel and Power Ltd (JSPL) clocked a net profit of ₹5,527 crore for the financial year 2020-21. In the previous financial year, JSPL had reported ₹574 crore net loss.
For the fourth quarter ended March 2021, the company reported a 23 times jump in its consolidated profit after tax (PAT) to ₹1,900.51 crore. Its net profit in the year-ago quarter was at ₹82.13 crore, JSPL said in a BSE filing.
In a statement, the company said its annual production of steel including pig iron rose 19% year-on-year to 7.51 million tonnes, while the production of pellets rose by 6.6% to 7.28 million tonnes.
JSPL’s annual consolidated gross revenue grew by 224% year-on-year to ₹42,745 crore.
“Better export markets during the year resulted in JSPL exports rising by 226% to 2.53 million tonnes in FY21, accounting for 35% of the overall sales against 13% in FY20," the company said in a statement.
The company added that its balance sheet is now the strongest in the sector as good operational performance, divestment of non-core assets, and lower Capex have all contributed to its deleveraging exercise with net debt declining by 38% year-on-year to ₹22,146 crore at the end of the financial year 2020-21.
The annual net loss of the firm’s subsidiary Jindal Power Ltd shot up to 449% to ₹1,258 crore.
JSPL recently announced that it will sell its 96.42% stake in the power subsidiary to Worldone Private Ltd (a private company owned by JSPL chairman Naveen Jindal) for an all-cash equity value consideration of ₹3,015 cr.
"Post-JPL divestment, JSPL will transform into a pure-play steel company with all its operations in India - one of the highest growth economies globally," the company said, adding that the divestment will significantly help JSPL reduce emissions improving ESG score, strengthen its balance sheet via debt reduction, shift entire management focus on company’s strong domestic steel business and improve return ratio’s for its investors as it progresses towards becoming a Net Debt free company.
The long stop date for completion of the proposed sale is 12 months.
Part of OP Jindal Group, Jindal Steel and Power Ltd (JSPL) has a presence in steel, power, mining, and infrastructure sectors.
Shares of the company ended 4.19% down at ₹456.70 a piece on BSE.
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