What has been the impact of the pandemic on your operations?
The virus has impacted the functioning and production of steel industry adversely. Our plants at Raigarh and Angul are fully operational since the start of the lockdown.
As domestic demand is low, are you stepping up exports?
Our plants are working at 75-80% capacity utilisation. We are exporting 80% of production these days. We are exporting steel to China, Malaysia, Europe, the USA, etc. We are also catering to the export order of rail blooms from France. In the domestic market, we have received supply orders from Rail Vikas Nigam for Kolkata Metro.
When do you expect a pickup in steel demand?
Domestic steel demand has seen a major fall post-March, as India is going through a complete lockdown. I am hopeful that domestic steel demand will pick up before the monsoon season, post lockdown, as infrastructure projects and construction activities will resume.
What kind of stimulus will help the steel industry?
A stimulus package is necessary. Firstly, the government should frontload its $250 billion spending plan under the National Infrastructure Pipeline. Secondly, it should announce a sizeable package to compensate, at least partially, the loss of income suffered by Indian industry. Also, under the ambit of monetary policy, banks must extend term loans and working capital to industry.
Are you considering raising money?
Yes, we are looking at raising cash, not considering equity.
What impact will the crisis have on JSPL’s debt repayment plan?
The company plans to continue with its debt-reduction strategy in 2020-21 as well. The company’s current debt at a consolidated level stands at Rs. 34,000 crore, down 28% from its peak level of Rs. 47,000 crore in 2016-17. At a consolidated level, we want to bring it down to Rs. 25,000 crore in two years.
Do you plan a post-Covid review of your overseas business?
Our overseas plants and mines are doing well. We are always open to good opportunities for divesting.
JSPL had plans of monetising some of its investments?
For a long time, JSPL explored option of an IPO to encash a part of its Oman operations. But it has dropped the IPO plan and may go for stake sale.
Will JSPL seek a moratorium for repaying loans ?
We have applied for a moratorium, like many other corporates.