Made of steel: JSPL's earnings may head north on rising production

The firm highlighted this was the highest ever output by any blast furnace in India

The June quarter witnessed subdued steel demand and realisations for the sector, and concerns over the monsoon season impacting construction activity and consequently volumes, in the September quarter, now prevail.

Therefore, the 16 per cent growth in sales volume reported by Jindal Steel and Power (JSPL) for the June quarter — amid concerns over near-term demand and profitability — provides confidence. 

JSPL, however, seems to be an exception, and continues to benefit from its expanded capacities at Angul (Odisha), which are contributing to production and sales growth. Analysts feel the management’s guidance of 6.5 million tonnes (mt) of domestic production during FY20