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Jindal Steel rallies 3% on robust Q3 sales, production data

Shares of Jindal Steel and Power (JSPL) advanced over 3 per cent in Thursday’s session after the company informed bourses that it registered strong growth in sales and production during the December quarter.

For the third quarter ended December 2019, JSPL recorded a growth of 30 per cent in sales at 1.66 million tonnes as against 1.27 million tonnes in the same period last year. Export shipments increased to more than 3 lakh MT, an increase of 213 per cent (YoY) during Q3FY20.

The company added that it has recorded the highest ever quarterly domestic production of crude steel and related products with a 22 per cent year-on-year (YoY) growth in the third quarter ended, as a result of the strong and consistence performance across all locations, especially in the Angul operations.

The total crude steel and related production stood at 1.61 million tonnes, compared with 1.32 million tonnes in the corresponding period last year.

“JSPL delivered a solid performance in the third quarter and the results were essentially in line with our expectations. This is despite adverse market conditions. JSPL recorded forever highest rail sales volume for the quarter” said VR Sharma, MD, JSPL.

Union finance minister Nirmala Sitharaman recently unveiled Rs 102 lakh crore of projects under the National Infrastructure Pipeline, which is to be implemented in the next five years as part of the government’s spending push in the infrastructure sector.

“Increased demand from infrastructure projects especially for segments like railways, defence, petroleum, and pipelines will certainly drive steel demands for JSPL,” Sharma added.

The scrip traded 3.22 per cent up at Rs 172.30 at around 10.30 am (IST), while the benchmark BSE Sensex was up 129 points, or 0.31 per cent, at 41,435.

Source: Economic Times