Domestic steel and power producer JSPL on Monday announced that it has made a prepayment of Rs 2,462 crore to its term lenders.
The prepayment of debt is in continuation of the company’s long stated financial strategy of debt reduction and building a robust balance sheet with optimum capital mix.
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.
JSPL has worked with a singular focus of debt reduction of more than Rs 20000 crores from a peak of approximately Rs 46,500 cr in 3QFY17 to Rs 25,600 cr as reported in 3QFY21, the company said in a statement.
This reduction of Rs 2,462 cr is over and above the annual committed debt reduction in the financial year 2020-2021.
Speaking on this development JSPL’s MD V R Sharma said, “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 in the near future”.