With steel prices having risen ~$35/t since end Nov-2019, JSPL has guided EBITDA/t of ~$145/t in 4Q ($27/t QoQ). JSPL reiterated its guidance of 6.5mt steel volumes in FY20. The start of Angul DRI early this month would help improve volumes but finished steel capacity might be a bottleneck.
Net debt fell Rs.12bn QoQ to Rs.355bn and was down Rs.38bn in 9MFY20. Coal availability hurt JPL PLFs in 3Q. The company expects to participate in upcoming block auctions and bid for PPAs by PFC. JSPL awaits SC decision on iron-ore fines lying at Sarda, which if in favour would help against rising domestic ore prices prior to lease expiry.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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