JSPL Reports 20% YoY Surge in Steel Production in Q1 of 2021-22
Jindal Steel & Power Limited has reported strong production in the first quarter of 2021-22. Steel production surged 20% YoY to 2.01 million tonnes, marking a record first quarter production and second highest quarterly production ever. Conscious decision by the company to divert oxygen towards saving precious human lives led to production getting impacted slightly. Solid performance in Q1 of 2021-22 signals that JSPL remains on track to achieve 2021-22 production target of 8.0-8.5 million tonnes
Despite challenging demand conditions in the domestic market, as a result of a severe than expected second wave of COVID-19, JSPL sales were resilient at 1.61 million tonnes up 3% YoY. Buoyant export markets continued to provide support with exports accounting for 44% of volumes in the month of June 21 and 34% in 1QFY22. Exports were however impacted by logistical challenges posed by adverse weather conditions leading to congestion at ports. Inventory of 150,000 tonnes currently remains stuck at port; which will be shipped as soon as the logistical bottlenecks are removed.