Jindal Steel & Power (JSPL), through its step down subsidiary, Jindal Steel & Power (Australia), has prepaid $105.66 million (about Rs 777.4 crore) loan.
The prepayment has helped reduce the Australian debt by approximately 50%. The company's Net Debt/EBITDA on consolidated basis was reported at 0.96x while standalone Net Debt/EBITDA was approximately 0.7x as of June quarter which is expected to go down further this quarter.JSPL has been working on net debt reduction of more than Rs 31,306 crore from a peak of approximately Rs 46,533 crore in 3QFY17 to Rs 15,227 crore as reported in Q1FY22. JSPL said it is focusing on maintaining minimum levels of liquidity on its balance sheet at all times and it is committed to become a net debt free company by FY23. It added that overseas debt will be completely paid in coming quarters.
"We are paying back to lenders before time in order to strengthen our balance sheet. The company is aligned with the India growth story and we want to become a net debt free company by FY23 through accelerated deleveraging. We will expand our Steel making capacity in Angul to more than 12 MTPA by 2025 through internal accruals," said V R Sharma, managing director, JSPL in a statement.
JSPL's consolidated net profit declined 73.5% to Rs 41.81 crore on a 62.8% rise in net sales to Rs 10,628.80 crore in Q1 FY22 over Q1 FY21.
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.
Shares of JSPL gained 0.54% to Rs 397.90 on BSE.
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