 "Capacity utilisation falls for RINL, JSW Steel and JSPL")
Helped by higher revenue from operations, Jindal Steel and Power Ltd (JSPL) today reported narrowing of its consolidated net loss at Rs 420.4 crore in the three months ended June 30.
The Naveen Jindal-led company had posted a consolidated net loss of Rs 1,238 crore in the April-June quarter a year ago, it said in a filing to BSE.
JSPL's total revenue from operations during the first quarter was at Rs 6,126.6 crore, registering an increase of 19.5 per cent.
In a separate filing, the company said its board has approved raising Rs 5,000 crore through issuance of non- convertible debentures on private placement basis.
The board has also given its go-ahead to increase the "authorised share capital of the company from Rs 200 crore... to Rs 300 crore...," it said.
The board has also approved "giving conversion right of loan into equity in case of default to lender pursuant to strategic debt restructuring scheme..(and) issuance of further securities for an amount not exceeding Rs 5,000 crore".
The go-ahead by the board is subject to the approval of the shareholders, it said.
The company's crude steel production was at 1.26 million tonnes (MT) on the consolidated level, as compared to 1.19 MT in the first quarter of FY2016-17, JSPL said in a statement.
"The overall PBT (profit before tax) and PAT (profit after tax) for the first quarter of FY2017-18 also improved by 63 per cent and 66 per cent (Y-o-Y), respectively," the statement said.
As on June 30, the company's consolidated net debt was maintained at the same level as last quarter.
Jindal Power Ltd (JPL), a subsidiary of JSPL, generated 3,186 units of electricity in the April-June quarter, as against 2,171 units in the corresponding quarter of previous fiscal.
"During the first quarter of FY 2017-18, the station PLF increased to 43 per cent compared to 36 per cent in the first quarter of FY2016-17," the statement said.
Elaborating on its global ventures, JSPL said "Operations in Mozambique produced 0.4 million tonnes of ROM during the quarter and is now all set to double its production during the next six months."
The company further said it is planning to augment the capacity of the existing coal washery and increase the number of shifts to increase output of coking coal from the Chirodzi mines.
In the April-June quarter, the operation in Wongawilli coking coal mines in Australia had to be discontinued due to its mining contractor's insolvency.
"The operations are all set for resumption from the middle of August 2017," the statement said.
On steel outlook, JSPL said that with the increasing activity level of irrigation and water distribution sectors, infrastructure including ports, air ports, bridges and roads/flyovers, the steel demand is expected to grow by 5-6 per cent during the ongoing fiscal.
"Consequently, the volume of steel produced and delivered by JSPL is likely to double its volume of the first quarter by the end of this year. FY2017-18, therefore, is expected to emerge as a turning point for JSPL Steel business. The prices in the domestic market complemented by upswing in the export volumes are expected to increase moderately," it said.
JSPL's working capital, which increased marginally during the last 15 days of first quarter due to GST, related suspension of deliveries by customers is normalised and company's efforts to reduce it further will continue, it added.
