Jindal Steel Cuts Costs with Innovative Coking Coal Diversification

Jindal Steel has successfully diversified its coking coal sources to lower risks and reduce costs. In line with the Indian government’s goal of producing 300 million tonnes of steel by 2030 and the Steel Ministry’s push for varied coking coal sources, Jindal Steel has started sourcing coking coal from Africa and Southeast Asia. This move has cut the company’s reliance on Australian coking coal by more than half, marking a significant first in the Indian steel industry.

Jindal Steel’s coke oven plants have successfully combined these new coking coal sources and plan to diversify further in the coming months. This has led to higher quality coke and increased steel production. The cost savings have boosted the company’s competitiveness in global markets. This strategy helps Jindal Steel better handle global supply chain challenges and supports India’s ambitious steel production goals.

Mr Pankaj Malhan, Executive Director in charge of Jindal Steel Angul, stated, “Given global uncertainties and supply chain disruptions, diversifying our coking coal sources was imperative. The Steel Ministry’s directive was timely and essential. By reducing reliance on Australian coking coal imports and increasing intake from other regions, we’ve strengthened our supply chain and improved cost efficiency. Kudos to our coke oven team for developing new blends and producing higher quality coke at a lower cost.”

Financial Highlights

The steelmaker’s consolidated profit after tax dropped by 21% to ₹1,338 crore (about $160 million) for the April-June quarter. The company reported a 22% increase in raw material costs, contributing to an 8% rise in total expenses, reaching ₹11,793 crore. Revenue from operations grew by 8.2% to ₹13,617.8 crore, up from ₹12,588 crore in the previous fiscal year. EBITDA also increased by 8%, reaching ₹2,839.2 crore in the first quarter of this fiscal, compared to ₹2,628 crore in the same period last year.

About Jindal Steel and Power

Jindal Steel and Power is a major industrial player in steel, mining, and infrastructure. The company has invested $12 billion worldwide and focuses on improving its capacity and efficiency to help make India more self-sufficient.

On August 9, 2024, the share price of Jindal Steel and Power Ltd. opened at ₹926.80, touching the day’s high of ₹ 937.00 as of 09:31 AM on the NSE.

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