Sourcing iron ore from the market after its reserves got depleted impacted performance of Jindal Steel and Power Ltd. in the first quarter, according to Managing Director VR Sharma.
Sourcing of iron ore from the markets led to a sequential dip in standalone Ebitda per tonne, Sharma said in an interview with BloombergQuint. It fell 7% to Rs 4,530 crore, dragged by a 16% decline in volumes over the preceding quarter.
To be sure, the company reported its highest ever consolidated Ebidta per tonne at Rs 28,098 in April-June. And Sharma said JSPL targets more than Rs 25,000 a tonne in “an extremely favourable situation” for the ongoing quarter ending September.
The forecast is based on the estimate of softer iron ore prices for the September quarter and stability in coking coal prices, he said.
For the fiscal 2021-22, the company expects to produce of 8.4 million tonnes of steel and sell 8.2 million tonnes. That compares with sales of 7.3 million tonnes in FY21.
JSPL expects to reduce its net debt below Rs 10,000 mark. Consolidated net debt (excluding Jindal Power Ltd.) declined 4% sequentially to Rs 15,220 crore as of quarter ended June.
Shares of JSPL rose 61% so far in 2021 compared with the benchmark NSE Nifty 50 index's 17% gain.
Watch the interview with JSPL Managing Director VR Sharma:
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