Bhubaneswar : Indian Steel giant JSW has decided to raise long term funds of Rs. 10,000 crore through issuance of NCDs in the domestic market. The company is planning to utilise the fund to replace short maturity loans, meet long term working capital requirements, capital expenditure, reimbursement of capex already incurred and or for general corporate purposes.
“..the Board has approved the raising of Long Term Funds subject-to applicable regulatory approvals and market conditions, through Issuance of Secured/Un-secured, Redeemable, Non-Convertible Debentures(NCD) not exceeding Rs. 10,000 crores, by way of private placement and or by way of public issuance, in one or more tranches, in the domestic market, to be used, inter alia, to replace short maturity loans, meet long term working capital requirements, capital expenditure, reimbursement of capex already incurred and/ or for general corporate purposes” JSW said in a stock market filing.
The Sajjan Jindal controlled company has reported to Rs 561.00 crore in the quarter ended June 2020 as against net profit of Rs 1028.00 crore during the previous quarter ended June 2019. Sales declined 40.98% to Rs 11454.00 crore in the quarter ended June 2020 as against Rs 19407.00 crore during the previous quarter ended June 2019.
JSW has reported Crude Steel Production of 2 .96 Million tonnes, with average capacity utilization of 66% for the quarter – as compared to an average utilization of 46% for the Indian steel industry. Saleable Steel sales for the quarter was 2 .80 Million tonnes. While the decline in India’s crude steel production was 41 % QoQ, the Company’s crude steel production declined by 25% QoQ.
“As the domestic demand was subdued, the Company strategically focused on the export markets to liquidate inventory and generate cash flows. The Company achieved a sales volume of 2.80 Million tons and export sales accounted for 53% of total sales volume. Domestic sales volume continued to improve in the months of May and June, signaling a gradual revival of economic activities within the country” JSW said.