Jindal Steel & Power (JSPL) reported a standalone net profit of Rs 6,623.08 crore in Q1 FY23 as compared with a net profit of Rs 2,660.73 crore in Q1 FY22.
Net sales during the quarter increased by 25.1% to Rs 13,015.21 crore
Profit before tax in Q1 FY23 stood at Rs 8,338.88 crore, which is significantly compared with Rs 3,554.13 crore in Q1 FY22.
In the first quarter, production of steel was 1.99 million tonnes (MT) (down 1% YoY) while that of pellets was 1.92 MT (down 11.1% YoY). Steel sales increased by 8.1% YoY to 1.74 MT while pellet sales tumbled 92.5% YoY to 0.03 MT in Q1 FY23.
JSPL said that both domestic and export volumes were impacted by challenging market conditions and imposition of export duty in May 2022.
The steel maker stated that global steel Industry continues to face severe margin pressures due to precipitous fall in steel prices across geographies. After hitting a peak in April 2022, India export hot rolled coil (HRC) have witnessed a sharp fall with spot prices down around 40% from the peak.
Domestic HRC and rebar prices have followed export prices and are lower by 20- 25% in the past 3 months. Challenges for the steel industry were further compounded by rising input costs as coking coal prices remained elevated for majority of Q1 FY23. While the industry continues to face lower steel prices, benefit of lower coking coal should reflect after a lag of 45-60 days.
"The company will aim to become net debt free by end of FY23, JSPL said in a statement.
JSPL is a leading Indian infrastructure conglomerate with a presence in the steel, power, and mining sectors.
The scrip tumbled 4.32% to end at Rs 345.40 on the BSE on Friday.
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