Coal block allocation, higher margins may cut costs to drive JSPL growth

Jindal Steel and Power (JSPL) outperformed its peers on the bourses, gaining over 46 per cent since its lows in September. The gains come at a time when the operating environment remains challenging. Steel players are witnessing demand pressure, which is impacting realisations and in turn profitability. 

JSPL, however, continues to stand out as expansions at its Angul plant are driving volumes, helping it gain economies of scale and higher margins.

The quarter gone by saw the company report volume growth of 3.9 per cent year-on-year, even as domestic operations of other steel majors — JSW Steel, SAIL, and Tata