Industrial Naveen Jindal, led by Jindal Steel and Power Ltd (JSPL), aims to free itself from short-term net debt and increase its capacity to 15.9 metric tons (MT) by fiscal year 24 and beyond the current 8.6 MT, the company said in an investor presentation. Wednesday.
JSPL’s consolidated net debt fell to Rs 15,227 crore in the first quarter of FY22 from Rs 22,146 crore in March 2021. The company’s net debt also fell by 32% in FY20 in fiscal year 21 and decreased to 64% on a consolidated basis since fiscal year 18.
The company said in May this year that it was in the process of reducing its debt significantly while embarking on a new round of investment.
Read also: Jindal Steel aims to free itself from net debt; increase capacity to 27 MT
JSPL had made an early repayment of Rs 2,462 crore to its term lenders in addition to loan repayments of Rs 20,000 crore over the past three years through December 2020.
The company also said it plans to double its capacity at the Angul plant in Odisha to 12 million tonnes per year (MTPA) over the next three years.
“We are also working to reach our target of 3:15:50, that is to say an EBITDA of Rs 15,000 crore, a net debt of Rs 15,000 crore and a gross turnover of Rs 50,000 crore. Over the next few quarters, we intend to further strengthen the balance sheet and go net debt-free in the near future, ”said VR Sharma, MD, JSPL.
The steelmaker’s Vision 2030 focuses on increasing the company’s capacity to 27 MTPA through clean energy resources. It will take a CAPEX of Rs 1.20 lakh crore.
Read also: JSPL accepts Worldone’s revised Rs 7,401cr offer for Jindal Power
JSPL announced earlier this year the divestiture of its 3,400 megawatt (MW) thermal power business to reduce debt and cut its carbon footprint by nearly half.
The company’s consolidated net profit increased tenfold to Rs 2,516 crore in the June 2021 quarter.
Its net profit after tax from continuing operations during the quarter from April to June 2020 was Rs 236 crore.
The steelmaker’s total income in April-June 2021 also rose to Rs 10,643.17 crore, from Rs 6,519.27 crore a year ago.