JSPL aims to be net debt-free; grow capacity to 15.9 MT by 2024

Industrialist Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) aims to go net debt-free in short term and increase capacity to 15.9 metric tonnes (MT) by FY24 and beyond from the current 8.6 MT, the company said in an investor presentation on Wednesday.

JSPL's consolidated net debt declined to Rs 15,227 crore in Q1FY22 from Rs 22,146 crore in March 2021. The company's net debt also reduced by 32% from FY20 to FY21 and has narrowed to 64% on a consolidated basis since FY18.

The company had said in May this year that it was in the process of drastically cutting down its debt while going for a new capital expenditure cycle.

Also Read: Jindal Steel aims to become net debt free; grow capacity to 27 MT

JSPL had made a prepayment of Rs 2,462 crore to its term lenders in addition to the loan repayments of Rs 20,000 crore in the last three years until December 2020.

The company also said that it plans to double its capacity at the Angul plant in Odisha to 12 million tonnes per annum (MTPA) in the next three years.

"We are also working to achieve our 15:15:50 target, that is, Rs 15,000 crore EBITDA, Rs 15,000 crore net debt and Rs 50,000 crore gross turnover. In the coming quarters we intend to further strengthen the balance sheet and become net debt-free in the near future," said VR Sharma, MD, JSPL.

The steelmaker's Vision 2030 focuses on increasing the capacity of the company to 27 MTPA through clean energy resources. It will require a CAPEX of Rs 1.20 lakh crore.

Also Read: JSPL accepts Worldone's Rs 7,401 cr revised offer for Jindal Power

JSPL had earlier this year announced divestment of its 3,400 megawatt (MW) thermal power business to reduce debt as well as to cut down its carbon footprint by almost half.

The company's consolidated net profit jumped over 10 times to Rs 2,516 crore during the June 2021 quarter.

Its net profit after tax from continuing operation during the April-June 2020 quarter had stood at Rs 236 crore. 

The steelmaker's total income in April-June 2021 also jumped to Rs 10,643.17 crore, from Rs 6,519.27 crore in the year-ago period.