JSW Steel keen on big PSU acquisition, says NMDC Steel a good bet
Sajjan Jindal, Chairman, and MD said most of the consolidation in the Indian market has happened already and the leftover companies are very small steel firms in which JSW Steel is not interested. He was speaking exclusively to CNBC-TV18 from the sidelines of EY's WEOY in Monte Carlo, where he is representing India among 49 other leaders from across the world and sectors. Shares of JSW Steel Ltd ended at Rs 729.75, up by Rs 17.50, or 2.46 percent on the BSE.
Steel major JSW Steel on Wednesday, June 7, said the company is looking at the acquisition of a large PSU (public sector undertaking) if it comes up for disinvestment, and added that NMDC Steel Ltd (NSL) may be a good candidate.
Speaking exclusively to CNBC-TV18 from the sidelines of EY's WEOY in Monte Carlo, where he is representing India among 49 other leaders from across the world and sectors, Sajjan Jindal, Chairman, and MD, said, it's going to focus all energies inwards in India and will be expanding capacities and mostly via brownfield and greenfield expansions, rather than acquisitions.
Jindal said most of the consolidation in the Indian market has happened already and the leftover companies are very small steel firms in which JSW Steel is not interested.
JSW Steel posted an 11.9 percent rise in consolidated net profit at Rs 3,741 crore for the March quarter of 2022-23. Total income rose to Rs 47,427 crore from Rs 47,128 crore in the year-ago quarter.
On a standalone basis, JSW Steel’s net profit rose to Rs 2,828 crore from Rs 2,737 crore in January-March 2022. Income was at Rs 37,705 crore against Rs 36,427 crore in the same period a year earlier. Expenses on a standalone basis were at Rs 33,767 crore against Rs 31, 646 crore a year ago.
The company said its overall crude steel production was at 6.58 million tonnes (MT) during Q4 FY23, up 13 percent over the year-ago period. Sales during the quarter also rose 9 percent year-on-year to 6.53 MT.
Currently, the government holds a 60.79 percent stake in NMDC Steel, which has a plant in Nagarnar in Chattisgarh. The strategic sale of NMDC Steel is likely to fetch around Rs 11,000 crore for the government. Subsequent to the demerger, shares of NSL will be listed on BSE, National Stock Exchange of India Ltd, and Calcutta Stock Exchange.
Shares of JSW Steel Ltd ended at Rs 729.75, up by Rs 17.50, or 2.46 percent on the BSE.
First Published: Jun 7, 2023 8:28 PM IST
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