Better volumes, led by expansion, to drive JSPL's future earnings: Analysts

Analysts expect better volumes, led by expansion and operating efficiencies, to drive future earnings

In a quarter that saw steel prices coming under pressure and falling to a one-year low, Jindal Steel and Power (JSPL) did well, reporting a 7.7 per cent sequential improvement in operating performance in its India business. For the quarter ended December 2019 (Q3), while rising volumes and improved operating efficiency at its Angul plant helped, declining raw material prices proved supportive. Notably, JSPL’s prospects are seen improving, and analysts say there are more gains for the stock, which has almost doubled in less than four months.
 
JSPL’s domestic steel sales volumes grew 21 per cent sequentially and 34