JSPL Targets to Become Debt-Free by March 2023

SEATTLE (Scrap Monster): Jindal Steel & Power Limited (JSPL) is likely to benefit from ongoing expansion of its operations, operational efficiencies and improved raw material sourcing. The company targets to become net debt-free by March 2023. Meantime, analysts maintained positive outlook on the company.

The company had posted decent production figures during the month of November this year. The steel production by the company surged higher by almost 10% year-on-year to 6.74 lakh tonnes. On the contrary, the shortage of rakes hampered steel sales, which totalled 5.39 lakh tonnes, falling by 5% over the previous year.

JSPL’s acquisition of operational Kasia mines will ensure supply of raw materials to Barbil pellet plant. Iron ore prices too have corrected significantly from its peaks. The natural hedge from its overseas coal mines and available lower-cost inventory available with the company will prevent the company from the impacts of higher coking coal costs. It must be noted that rising raw material costs have been a major spoiler for the thriving steel industry in the country.

According to analysts, JSPL’s product portfolio comprising non-commodity steel like rails, specialized plates and structural products are likely to witness improved demand post-monsoon.