Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian steelmaker Jindal Steel and Power Ltd (JSPL) has planned to lift its production capacity to 15.9mn mt by FY2025, which would be nearly double of its current capacity of 8.6mn mt, the company said in an investor presentation on Wednesday.


In line with massive steel capacity vision for India till 2030 which targets a capacity of 300mn mt, JSPL is focusing on increasing its capacity to 27mn mt per annum using mostly clean energy resources. It will require a CAPEX of Rs1200bn or ($16bn).


The company is targeting the Angul plant in Odisha for the largest capacity expansion, reaching 12mn mt per annum in the next three years. 


Financials’ for Q1 FY2022:

Net profit: Jumped by more than 10 folds to Rs25,160mn ($338.9mn).

Net profit after tax: Rs2360mn ($31.78mn).  

Total income: Rs106.43bn from Rs65.12bn from the same quarter prior year.


The company also targets to become net debt-free as soon as possible with well defined liquidity policy to maintain $300mn cash. By 2024, it aims to increase supply in captive mines to ensure uninterrupted supply. 


In Q1 FY2022 (April-June 2021), JSPL’s consolidated net debt declined to Rs152.27bn or $2.05bn from Rs221.46bn or $2.98bn in March 2021.  

The company is making efforts to reduce its net debt every year. Net debt reduced by 32pc from FY2020 to FY2021 and lowered by more than 64pc since the last four financial years.


JSPL group is working to achieve a new target of 15:15:50 ratio indicating Rs150bn EBITDA, Rs150bn net debt and Rs500bn gross turnover. This will help it become net debt free soon.  


The company has diverted its business focus from power to steel to lower debt and to contribute lowering carbon emission in India. It announced divestment of its 3,400 megawatt (MW) thermal power business and aims to cut down its carbon footprint by almost 50pc.




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