Tag: Jindal Steel and Power Ltd (JSPL)

Jindal Steel signs MoU with Indian Coast Guard to provide marine grade steel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian Coast Guard and Jindal Steel & Power Ltd signed a Memorandum of Understanding (MoU) on Tuesday for the supply of indigenous marine-grade steel. According to a press release, this partnership underscores the shared commitment to promote indigenisation.

The MoU was signed by Deputy Director General (Materiel & Maintenance) of the Indian Coast Guard, IG HK Sharma, and Chief Marketing Officer of Jindal Steel & Power, SK Pradhan, in the presence of senior officers from the Indian Coast Guard.

The press release also said that the MoU highlights the critical role of public-private partnerships in tackling intricate security challenges, emphasising the necessity of cooperation between governmental bodies and the private sector.

Within the MoU, various significant advantages such as quality, grades, and dimensions, alongside the identification of specific steel plants tasked with manufacturing the product are outlined. These provisions serve as assurances to shipbuilding yards, ensuring a timely and consistent supply of marine-grade steel for the Indian Coast Guard.

At around 1:30 PM on May 8, shares of Jindal Steel & Power Ltd were trading at ₹948 apiece on the BSE, witnessing a gain of 2.13%. The stock opened at ₹923.05, marginally lower than its previous close of ₹924.25 apiece.

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Steel prices up 10% in Europe in last 2 days; industry facing energy cost threat: JSPL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With the Russia-Ukraine war having taken centre stage, commodity prices have been set ablaze across various markets. Metal prices have reacted to the ongoing tensions as well. Steel prices have shot up by 10 percent in Europe in the last two days, shared VR Sharma, MD, JSPL, in an interview to CNBC-TV18. He added that input prices are very high at the moment, be it coking coal or gas, however, the only saving grace is that there are no shortages of raw materials in India.

He said, “There is a worldwide crisis because of the war (Russian-Ukraine). The energy prices have gone up everywhere in the world and steel prices, in Europe, shot up by 10 percent in the last two days. Yesterday, March 1, ArcelorMittal declared an increase of 150 euros on hot-rolled coil because input costs are very high. So this is going to create a lot of uncertainties in the market, but the benefit will be availed by the steel suppliers where there is no energy, raw material or input shortage, for example, in India.”

Delving deeper into the tribulations that the industry is currently grappling with, Sharma shared coking coal prices have gone up by $40 per tonne in the last two weeks. Further, he mentioned that around 50 percent of input costs for the steel industry is towards energy and it is facing a threat in terms of energy costs. He elaborated that natural gas prices are at $25-30/mmbtu. In order to combat the rising raw material price pressures, the company hiked its prices on Tuesday, Sharma mentioned.

He said, “We are trying to push the input cost rise to the market. The international market is excellent as far as prices are concerned because there are a lot of inquiries, a lot of orders coming from Europe and also from America.”

Meanwhile, Amit Dixit, Director-Institutional Equities, Edelweiss Securities, views the Russia-Ukraine conflict as an opportunity for the Indian steel players. He explained that Russia is a big exporter of steel in global markets and since Japanese and Korean mills don’t have meaningful steel exports, it naturally presents an opportunity on a platter to some of the Indian players in the steel industry.

He mentioned that JSPL, JSW Steel and Tata Steel could be some of the beneficiaries, meanwhile, Hindalco would benefit in the aluminium space.

Catch all the live updates on Russia-Ukraine war here

For the entire discussion, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSPL sets eyes on Reliance Naval; says no plans to borrow for acquisition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jindal Steel (JSPL) is in focus after Business Standard reported that the company is keen on acquiring bankrupt Reliance Naval and Engineering. Additionally, Morgan Stanley believes that Indian steel producers could increase prices.

VR Sharma, Managing Director at JSPL discussed the developments and confirmed the interest.

“We have visited Reliance Naval about ten days back. We have seen the facilities, the facilities are good. We have shown our interest. We have issued our expression of interest (EoI) letter and we are interested in this deal,” he said.

“Government of India and the Ministry of Defence are working very strongly to make India Aatmanirbhar in terms of making warships. If we take over this plant, it comes to us at a price that we are looking at, this means we can sell our products, we can sell our structures to this unit,” he added.

The company is looking to do Reliance Naval deal in its individual capacity and is not planning to borrow any money from any of the banks for this deal.
“Out of accruals if we can fund it and if we can acquire it then only we will do this deal. The EoI has been given, so now we are waiting for the discussions,” he stated.

In terms of debt, he mentioned, “We have now Rs 25,000 crore of debt. We will be ending this financial year with around Rs 21,000 crore of debt and our target is by the end of 2022 financial year, we will bring it down to Rs 15,000 crore.”

For entire discussion, watch the video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSPL posts record sales, production numbers in December

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private steel maker Jindal Steel and Power Ltd (JSPL) on Monday posted a record 30 percent jump in its standalone production and 25 percent growth in sales during December 2020. The company’s total production from its plants in India was at 7.27 lakh tonne (LT) in December, up from 5.59 LT during the same month in 2019, JSPL said in a statement.

During the month under review, its standalone sales were at 7.11 LT, as against 5.67 LT in December 2019. On a month-on-month basis, the production at 7.27 LT was over 18 percent higher from 6.14 LT in November 2020.

At 7.11 LT the sales in December 2020 were 26 percent up compared to 5.65 LT in November 2020. For October-December 2020, the company has posted 19.26 LT standalone production, up 20 percent from 16.10 LT in the same period in 2019.

During the period under review, the sales were at 18.76 LT, registering a rise of 12 compared to 16.71 LT in October-December 2019. In the statement, JSPL said the company recorded its highest ever production and sales numbers in December 2020, as well as in the October-December period.

”We are proud of our dedicated workforce who achieved such an extraordinary increase in the production with existing capacity by way of optimizing various operating parameters without any Capex. We will achieve even greater heights in times to come,” JSPL Managing Director (MD) V R Sharma said. Part of the OP Jindal Group, JSPL has presence in steel, power, mining and infrastructure sectors.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSPL Q2 output grows 18% to 2.35 MT; sales jump 30% to 2.41 MT

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jindal Steel and Power Ltd (JSPL) on Tuesday said its consolidated steel production rose 18 percent to 2.35 million tonnes (MT) in the July-September 2020 quarter. Its sales jumped 30 percent to 2.41 MT in the second quarter of the current fiscal. During July-September 2019, the company’s output was at 1.99 MT and sales stood at 1.85 MT, the company said in a statement.

On a quarter on quarter (q-o-q) basis, the 2.35 MT output was 15 percent higher than 2.03 MT in the April-June quarter of the running financial year. The 2.41 MT sales in July-September was 16 percent higher, in comparison to 2.07 MT sales in the April-June period. Steel exports contributed to 38 percent of the total sales volume with 0.74 MT, the company said.

On a standalone basis, in the July-September period, JSPL’s output grew 16 percent to 1.84 MT from 1.58 MT in the same period of the preceding fiscal. The company registered a 29 percent jump in its standalone sales at 1.93 MT as against 1.49 MT in year-ago-quarter. On a quarter on quarter (q-o-q) basis, the 1.84 MT standalone output was 10 percent higher from 1.67 MT in the April-June quarter of the running financial year. The 1.93 MT standalone sales in July-September was 23 percent higher, in comparison to 1.56 MT sales in April-June period.

In the statement, JSPL Managing Director V R Sharma said, ”We are setting new production benchmarks for ourselves and would like to surpass them consistently going forward. We are ramping up sales and production, as India comes out of the lockdown effect and ramps up its economic activities towards a renewed growth path.” Last week, the company received rail supplier status from the Indian Railways for supplying rails for its upcoming and ongoing projects. Part of O P Jindal Group, JSPL has presence in steel, power, mining and infrastructure sectors.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSPL to sell stake in Oman subsidiary for over USD 1 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jindal Steel and Power Ltd (JSPL) on Tuesday said it will offload its entire stake in Oman-based subsidiary for over USD 1 billion (Rs 7,500 crore). JSPL, in a statement, said its subsidiary “Jindal Steel and Power (Mauritius) Ltd (JSPML) has accepted a binding offer from Templar Investments Limited to divest its entire stake in its Oman asset Jindal Shadeed Iron and Steel Co LLC (JSIS Oman)”.

The enterprise value of the deal is over USD 1 billion, it said. The transaction is subject to approval from shareholders of JSPL and lenders of JSIS Oman, among others. The company said it expects the transaction to close approximately in a month.

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

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Supreme Court’s nod to lift iron ore of Rs 2,000 crore from Sarda Mines is a great relief, says JSPL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a relief for Jindal Steel and Power Ltd (JSPL), the Supreme Court on Thursday gave approval to lift Rs 2,000 crore worth of iron ore from Sarda Mines Private Ltd (SMPL) in Odisha, subject to riders.

JSPL  MD  VR Sharma said this move will follow repayment of penalty dues by Sarda.

“This is a great relief to us in terms of managing the working capital. We are thankful to SC to have listened to us. This matter was going on for the last five and a half to six years’ time.”

Finally, the court has allowed us to pick up the material, which is lying in the premises of Sarda Mines. The company will be now in a position to take out the material, he said.

“The rider was that SMPL must pay Rs 933 crore to state government. Our legal team told us that we have got the permission and Sarda has already made the payment of Rs 930 crore penalty. It was a liability on Sarda Mines,” he added.

“The payment for the iron ore, which is lying in SMPL, has already been made by us. The royalties are also paid. The proceeds are only if we are selling the material to a third party but if we are using it in-house then only up to the amount of the working capital loan given to us is to be paid. That is not a problem, we are paying it. We are also allowed to sell it outside as per government policy,” Sharma said.

There was only one rider that JSPL will be allowed to pick up their iron ore once the payment is made, he further said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jindal Steel reports highest ever quarterly domestic production in Q3FY20; sales up 30% YoY

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jindal Steel & Power Ltd (JSPL) shares rose over 3 percent on Thursday after it reported 30 percent year-on-year growth in quarterly sales of crude steel and related products in the third quarter ended December 2019 along with highest ever quarterly domestic production.

The stock gained as much as 3.42 percent to touch intraday high of Rs 172 per share on the BSE.

The company’s total sales in Q3FY20 stood at 1.66 million tonnes as against 1.27 MT in the same period last year. Export shipments during the quarter increased to more than 3 lakh MT, registering an increase of 213 percent YoY.

“Being the most challenging quarter, where core sector output fell for the fourth straight month to a dip of 1.5 percent and steel growth rate of -3.4 percent in November 2019, JSPL’s demonstrated a robust performance,” the company said in a regulatory filing.

The company also recorded its highest ever quarterly domestic production of crude steel and related products with a 22 percent year on year growth in Q3FY20, as a result of the strong and consistence performance across all locations, especially in the Angul operations, it said.

The total crude steel and related production stood at 1.61 million tonnes, compared to 1.32 million tonnes in the corresponding period last year.

“We are going to start our DRI-CGP (Coal Gasification plant) unit at Angul during January 2020, and together with a favourably evolving product mix, we expect to further drive growth in sales and profit,” said VR Sharma, managing director, Jindal Steel & Power Ltd.

JSIS-Oman also observed highest ever sales & production during Q3FY20, it added.

Steel sales increased by 27 percent on year to 0.572 million MT and steel production increased by 10 percent to 0.502 million MT.

“As we begin 2020, we are excited about the prospects, and confident that the coming quarter would be even much better for JSPL Union finance minister Nirmala Sitharaman recently unveiled Rs 102 Lakh crore of projects under National Infrastructure Pipeline, which is to be implemented in the next five year as part of the government’s spending push in the infrastructure sector,” Sharma said.

He further expects that increased demand from infrastructure projects especially for segments like railways, defense, petroleum, and pipelines will certainly drive steel demands for JSPL.

At 9:50 am, shares of Jindal Steel & Power were trading 2.13 percent higher at Rs 169.85 on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow