Jindal Steel & Power (JSPL) said that steel production surged 20% to 2.01 million tonnes (MT) in Q1 FY22 as against 1.67 MT in Q1 FY21.
"Solid performance in Q1 FY22 gives us confidence of achieving FY22 production target of 8.0 to 8.5 million tonnes," the company said in a statement.
Despite challenging demand conditions in the domestic market, as a result of a severe than expected second wave of COVID-19, JSPL sales rose by 3% to 1.61 MT in Q1 FY22 from 1.56 MT in Q1 FY21.
Buoyant export markets continued to provide support with exports accounting for 44% of volumes in the month of June 21 and 34% in 1QFY22. Exports accounted for 58% of total sales volume in Q1 FY21.
The company said that the exports were impacted by logistical challenges posed by adverse weather conditions leading to congestion at ports. Inventory of 1.5 lakh tonnes currently remains stuck at port, which will be shipped as soon as the logistical bottlenecks are removed.
V R Sharma, managing director of JSPL, said: "We are happy that despite pandemic adversities the company has maintained the growth momentum and an upward trajectory. We also aim to reduce our overall debt to Rs 9,900 crore by the end of this financial year."
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.
On a consolidated basis, JSPL's net profit surged 600% to Rs 2,139.28 crore on 74.6% jump in net sales to Rs 11,887.88 crore in Q4 March 2021 over Q4 March 2020.
The scrip fell 1.46% to Rs 385.30 on the BSE.
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