Jindal Steel and Power Limited (JSPL) announced major debt reduction plans. The company bets on rising steel prices and the big government push on infrastructure projects to drive sales growth over the coming years.

According to VR Sharma, Managing Director, JSPL, the company aims to cut its debt from INR 34,000 crore at the start of the current financial year by about INR 5,000 crore by this fiscal year itself. By 2022-’23, it expects to lower the debt to as low as INR 15,000 crore, he added. The company targets sales turnover of INR 50,000 crore and EBITDA of INR 15,000 crore by then.

It must be noted that JSPL had reported an EBITDA of INR 7,894 crore and net loss of INR 399 crore during the fiscal year ended March 2020.

Commenting on the market conditions, the company noted that demand outstrips supply at present. The country’s steel spreads hit the highest level in three years during Q3 FY21. JSPL has been witnessing increased domestic demand for hardened rails from several metro railway projects, including Kolkata Metro and Pune Metro. The big push to infrastructure projects by the Indian government is expected to drive sales growth. The rising steel prices may also benefit the company in the coming years.