Jindal Steel and Power Ltd (JSPL) swung into black, posting a consolidated net profit of Rs 267.58 crore for the first quarter ended June 30, mainly on account of lower expenses. The company had clocked Rs 87.40 crore consolidated net loss in the same quarter a year ago.
During April-June 2020, the company’s total income declined to Rs 9,281.88 crore from Rs 9,945.58 crore in the year-ago quarter, JSPL said in a BSE filing on Wednesday.
JSPL’s expenses during the quarter under review came down to Rs 8,880.69 crore from Rs 9,935.12 crore in April-June of 2019-20.
In a separate statement, the company said it produced 2.03 million tonne (MT) of crude steel in April-June 2020, up 4 per cent, from 1.96 MT in the year-ago quarter.
It sold 2.07 MT steel during the quarter as compared to 1.92 MT in the year-ago period, registering a rise of 8 per cent.
On its quarterly performance, JSPL said, “The world was reeling from a pandemic-induced recession and lockdowns to check the spread of COVID-19, but JSPL held its own and continued its growth momentum with increased steel volumes”.
Before relaxing the restrictions, the government had imposed a nationwide lockdown on March 25 to prevent spread of coronavirus pandemic which has impacted production, demand and supply of steel in India.
Looking at the disruptions, the company shifted focus towards securing export orders from countries like Vietnam, Saudi Arab, Thailand, Europe etc, to ensure continuous operation of its plants.
JSPL also said that during the quarter, its mine at Chirodzi in Mozambique produced 663 KT ROM (kilo tonne run of mine).
“Due to the falling demand of coking coal, the realisations during the reported quarter went down significantly. Despite these challenging market conditions, the production at Mozambique continues to ramp up and remain profitable,” it said.
In Australia, both Wongawilli and Russell Vale mines continue to remain under care and maintenance, the company said, adding it is looking to monetise its non-mining land parcels in Wongawilli.
JSPL, a part of the OP Jindal Group, has presence in steel, power, mining and infrastructure sectors.