New Delhi, Aug 10 (IANS): Domestic steelmaker Jindal Steel and Power Ltd (JSPL) has reported a sharp 427 per cent increase in its standalone net profit for April-June quarter of 2021-22, helped by strong demand and higher sales including an uptick in steel prices.

The company's standalone Q1 FY22 net profit stood at Rs 2,661, up from Rs 505 crore in the same period of the previous year.

However, the company's profitability had been hit due to pandemic disruptions as is evident from MoM profit figures. The company had reported net profit of Rs 3,426 crore in Q4 period of FY21.

The standalone net revenue of the company during the period under review stood at Rs 10,385 crore, a growth of over 65 per cent over net revenue figure of Rs 6,281 crore reported in Q1 period of FY21.

During 1QFY22, JSPL standalone reported steel production (including pig iron) of 2.01 million tonnes (up 20 per cent YoY), a record first quarter production.

While the domestic demand was severely impacted by the second wave of Covid-19, lucrative export markets aided company's effort in improving sales compared to previous year (1.61mt, up 3 per cent YoY). Share of exports increased to 34 per cent in 1QFY22 compared to 27 per cent in the prior quarter.

Continued cash generation, declining finance cost, lower capex and debt associated with the JPL (Jindal Power Ltd) moving out of the JSPL's consolidated books have all contributed to continued deleveraging in 1QFY22, the company said in a statement.

Consolidated net debt of the JSPL has declined further to Rs 15,227 crore in 1QFY22 (from Rs 22,146 crore in March 2021).

Conclusion of the JPL divestment (now accounted as asset held for sale) will result in net debt declining further, taking the JSPL a step closer to its vision of becoming a net debt free company - a rare feat in the steel sector, it said.