Dear Esteemed Shareholders,
I am pleased to address you following an eventful fiscal year 2023-24
for Jindal Steel & Power (JSP). This year has been marked by significant advancements
and resilient performance amidst dynamic market conditions. Despite challenges, we have
fortified our position in India's steel industry through targeted initiatives and prudent
management practices.
Our commitment to operational excellence is evident in our efforts to
expand production capacities and enhance efficiency, ensuring sustainable growth and
profitability. I extend my heartfelt appreciation for your continued support, which
remains pivotal as we navigate the opportunities and the challenges ahead.
Embracing Strength and Growth
India continues to spearhead global steel demand, a testament to its
resilience and growth trajectory. In FY 2023-24, our nation's steel demand grew by 1.8
times the estimated real GDP growth, reflecting the pivotal role our industry plays in
accelerating economic development.
The National Steel Policy 2017 aims to bolster this by enhancing
domestic consumption and production capabilities, aligning perfectly with our vision of a
robust steel sector.
Resilient Performance
In FY 2023-24, our Company reported a strong gross revenue of ?58,115
crore and net revenue of ?50,183 crore. Our adjusted EBITDA for the year is ?10,231 crore,
demonstrating a strong performance.
This improvement in profitability is a testament to our focus on
operational excellence and prudent cost management strategies. Additionally, our Adjusted
EBITDA per tonne increased to ?13,336 from ? 12,629 in FY 2022-23, highlighting our
enhanced profitability and efficiency measures. Profit After Tax (PAT) surged to ?5,943
crore for the fiscal year, a rise from ?3,193 crore in the previous year.
This growth directly reflects our effective initiatives and a strong
focus on generating long-term value for our shareholders.
Strengthening Capabilities
We have embarked on ambitious expansion plans to reinforce our market
leadership by scaling up our crude steel capacity to 15.9 MTPA and finished steel capacity
to 13.75 MTPA which are in advanced stage of completion.
This expansion will allow us to meet growing demand and capitalise on
emerging opportunities. Our focus on the retail segment, through initiatives like loyalty
programmes and an upcoming e-commerce platform, aims to enhance customer engagement and
market penetration. Pursuing market leadership, we have made significant strides in
expanding our production capacities and capabilities. Aligned with India's growth
aspirations and to effectively meet market demands, we have commissioned critical projects
such as the Hot Strip Mill (HSM) and Pellet Plant. Progress on various capital expenditure
projects, including the Slurry Pipeline, Basic Oxygen Furnace (BOF) - II, and Angul
Captive Power Plant (ACPP) II, is on track for completion as per scheduled timelines.
Our Commitment to Sustainability
At JSP, our focus on environmental responsibility, social initiatives,
and innovation underlines our dedication to creating a better future for all.
We have pioneered an environmentally friendly process that
significantly reduces CO2 emissions. We aim to become carbon net zero by 2047,
demonstrating our longterm commitment to sustainability.
Our sustainability efforts extend beyond environmental stewardship to
include a strong commitment to social responsibility. Through various social initiatives
like Vatsalya, Kishori Express, and the PM's TB Mukt Bharat campaign, we have positively
impacted thousands of families, promoting healthcare and education across the communities
we serve.
Ongoing projects like Jindal Arogyam Hospitals and the Yashasvi scheme
underscore our dedication to holistic development and empowerment.
Striding Ahead with Confidence
At JSP, we are well-positioned to capitalise on emerging opportunities
in the steel sector. With a diverse portfolio of projects and a resilient business model,
we are confident in our ability to navigate challenges and achieve sustainable growth. Our
long-term vision is to pioneer innovative industry standards, drive inclusive progress,
and cultivate a culture of excellence that inspires success.
I extend my heartfelt gratitude to our team members for their
commitment to driving success. I also thank our esteemed Board of Directors for their
guidance and unwavering support, as well as our stakeholders for their trust and
collaboration. Together, we will continue to chart a path of growth and prosperity.
Sincerely,
Naveen Jindal Chairman