JSPL falls despite recording 31% growth in steel production in April-May 21

Jindal Steel & Power is currently trading at Rs. 397.75, down by 6.85 points or 1.69% from its previous closing of Rs. 404.60 on the BSE.

The scrip opened at Rs. 407.50 and has touched a high and low of Rs. 407.50 and Rs. 394.45 respectively. So far 255903 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 501.60 on 10-May-2021 and a 52 week low of Rs. 131.90 on 12-Jun-2020.

Last one week high and low of the scrip stood at Rs. 410.10 and Rs. 393.60 respectively. The current market cap of the company is Rs. 40601.74 crore.

The promoters holding in the company stood at 60.47%, while Institutions and Non-Institutions held 27.91% and 11.62% respectively.

Jindal Steel & Power (JSPL) has continued to report strong production so far in FY22. Steel production increased by 31% y-o-y to 13.71 lakh tonnes in April-May 21 (April 6.81 lakh tonnes and May 6.90 lakh tonnes) as compared to 10.44 lakh tonnes in the same period last year. As the country grapples with the second wave of COVID-19, The company’s firm belief in putting human lives ahead of economic gains has resulted in diversion of txygen towards life saving measures, impacting production. JSPL has supplied close to 3500 tonnes of Liquid Medical Oxygen (LMO) till date. With COVID-19 situation improving, it remains confident of achieving FY22 production target of 8.0-8.5mt.

Steel sales also increased by 7% Y-o-Y to 10.58 lakh tonnes (April 5.59 lakh tonnes and May 4.99 lakh tonnes). However, slowdown in domestic construction activities due to COVID-19 and logistical challenges faced owing to congestion at ports due to adverse weather conditions resulted in sales growth lagging production growth. JSPL continues to take measures to offset the impact of slowdown in domestic demand by exporting in lucrative global markets. Exports accounted for 21% of sales volumes in April, with the share rising further to 36% in May.

JSPL is one of India’s fastest growing and largest integrated steel manufacturers, significantly present in Steel, Power Generation and Infrastructure segments and catering to a large part of India's domestic energy and infrastructure requirement.