MUMBAI: Jindal Steel and Power Ltd saw a decent growth in its operating profit in the March quarter due to higher realisations. But the coming quarters could test its operating parameters as the two-month lockdown has slowed construction and manufacturing activity.
The Q4 figures did quite manage to impress the Street with the stock rising 13% on Tuesday, but it slipped 1% on Wednesday.
Volumes in the steel sector have shrunk due to the lockdown, and JSPL has not been an exception. Its domestic steel volumes declined 17% q-o-q as covid-19 disrupted sales. But JSPL seemed to have counter-balanced this through higher prices. In Q4, domestic steel prices were on the rise and JSPL’s realisations were about 9% higher in the quarter.
