Jindal Steel & Power Limited (JSPL) on Friday said it expects steel prices to remain firm for the remaining months of the current financial year.

 

“We expect economic activities to pick up in next six months. This would push up steel demand. At the same time, iron ore prices are also heading northwards,” Sushil Maroo, Director and Group CFO of JSPL said.

 

JSPL plans to borrow about $ 200-300 million in next six months from overseas market. These funds would be spent for foreign projects. Currently, JSPL has debt to the tune of Rs 15,000 crore.

 

JSPL targets to set up 1.6 million tonnes new steel melting shop at Angul, Odisha. This is expected to be commissioned by March 2013. “This would increase production and cut cost of plate manufacturing. This would take the total hot metal production capacity to 4.9 million tonnes,” Maroo said.

 

The company recorded profit after tax of Rs 903.45 crore (up 1.3%) in the second quarter of current financial year against Rs 891.80 crore in the same period last year.

 

The reason for flat profit is because of two reasons: first steel demand remains low in first two quarters. Second, there is a fall in power performance because plants were under maintenance.

 

“The fall in power business have been compensated by performance of steel and international business. The plant load factor during second quarter was 85 per cent compared to 92 per cent in the same period last year,” Maroo said.

 

JSPL has also seen its steel inventories increasing to 498,909 tonnes in the second quarter of current fiscal against 314,863 in the same months last year.

 

siddhartha.s@thehindu.co.in

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