JSPL's net profit soars in Q1 FY2022

Financial results of India's Jindal Steel and Power (JSPL) kept climbing in Q1 of FY2022 (January-March 2021) on higher sales volumes and surging finished steel tags in the domestic market.

JSPL posted a net profit of INR 22.26 billion ($304.9 million) for the period under review, which was 2 times higher than in Q4 of last financial year."Q4 FY21 showed recovery signs for the entire steel industry in India with utilization levels as well as domestic demand rising month on month [...] Q4 saw long steel prices rising alongside flat steel prices,” the steelmaker explained in the quarterly report.

The company's profits surged amid strong steel trade in the domestic market. The share of local sales rose from 62% in October-December 2020 to 79% in January-March 2021. Thus, last quarter JSPL sold 1.48 million t of steel domestically (up 23% q-o-q) and 392,700 t in export markets (down 46% q-o-q).

The company's indicator of profitability EBIT/t surged by 85% on-quarter and 282% on-year to INR 17,872/t ($245/t).

The steelmaker's outlook for Q2 is optimistic, as demand for steel products for construction sector and for rails remains strong.

2021/06/10