JSPL repays Rs 2,462 crore to its term lenders, aims to be debt-free in the short term – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/jspl-repays-rs-2462-crore-to-its-term-lenders-aims-to-be-debt-free-in-the-short-term/articleshow/82523860.cmsSynopsis

“This reduction of Rs.2,462 Cr is over & above the annual committed debt reduction in the financial year 2020-2021,” the company said in the statement.

Naveen Jindal-led JSPL has made a prepayment of Rs. 2,462 crore to its term lenders, a move in continuation of its long-stated financial strategy of debt reduction and strengthening its balance sheet with the optimum capital mix.

“The significant debt reduction is part of our long-term financial strategy to create a strong balance sheet. In the coming quarters, we intend to further strengthen our balance sheet and become net debt-free shortly,” said JSPL’s, managing director, V R Sharma in a media statement.

The Company’s production stood at 7.51 million tonnes during the financial year ended 31st March 2021. JSPL has recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.

The company has brought down its debt levels from Rs.46,500 crore in 3QFY17 to Rs.25,600 crore as reported in 3QFY21.

“This reduction of Rs.2,462 Cr is over & above the annual committed debt reduction in the financial year 2020-2021,” the company said in the statement.

The management has been talking also about achieving an Ebitda of Rs 15,000 crore and revenue of more than Rs 50,000 crore in the coming years.

“We will continue to work towards our target of 15:15:50, i.e., Rs 15,000 crore Ebitda: Rs 15,000 crore net debt: Rs 50,000 crore gross turnover,” said managing director VR Sharma sai

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