Domestic steel demand in the coming months is expecting a revival: JSPL

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Kolkata: JSPL has said with the phased opening up of the lockdown and an expected rise in government spending on construction and infrastructure, domestic demand for long steel products is expected to revive faster than that for flat steel products.

The company said this while sharing its outlook for domestic steel demand in the coming months, even as it reported a standalone EBITDA at Rs 1,562 crore during Q4FY20, a rise of 8% QoQ.

In a quarter initially marked by improving realization but followed by a drastic reduction in steel demand globally, JSPL’s standalone gross revenue came in at Rs 6,767 crore,” an official statement said on Monday.

JSPL reported steel production, including pig iron) of 1.54 million (tonne compared to 1.57 million tonne in Q4FY19 and sales of 1.40 million tonne against 1.52 million tonne in Q4FY19.
During Q4FY20, production of pellets was at 1.90 million tonne, a rise of 6% YoY. The company sold 0.46 MT during Q4FY20.

With the spread of Covid-19 in January-February outside China, the company decided to build its raw material inventory which helped it to continue production through a period of lockdown announced in the last week of March by the government. This came on the back of increased realizations, supported slightly by falling costs.

In Q4FY20, JSPL reported a consolidated grossrevenue of Rs 9,674 crore, down 14% YoY while consolidated EBITDA increased to Rs 2,220 crore from Rs 1,845 crore, up 20% YoY.

JSPL said it produced 2.11 million tonne of steel (including pig iron) the consolidated level, up 5% from 2.01 million tonne in Q4FY19 and sold 1.93 million tonne in the reported quarter against 1.98 million tonne in Q4FY19.

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