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Lower costs drive Jindal Steel and Power Q4 growth, but outlook challenging

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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.

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