Jindal Steel and Power (JSPL) shares gained as much as 3.75 per cent on Wednesday after it informed bourses that it has set-up the country’s first plant to manufacture Head Hardened Rails and becoming the only manufacturer of ‘Head Hardened Rails’ for modern hi-speed trains and metros. At 12.05 pm, shares of the company were trading 3.09 per cent up at Rs 85.20. The scrip opened the day at Rs 83.40 and has touched a high and low of Rs 85.75 and Rs 82.80, respectively, in trade so far. Later, the scrip settled 2.78 per cent up at Rs 84.95.
The plant was created with an investment of Rs 200 crore and it can deliver 30,000 MT of rails per month and has been set up in technical collaboration with M/S SMS MEER, Germany. Head Hardening technology entails a special heat treatment process which requires very precise temperature control to achieve nearly 50 per cent higher hardness as compared to a normal rail.
Naveen Jindal, chairman, JSPL in a release said: “In line with the government’s thrust on ‘Make in India’, JSPL has successfully completed trials of Head Hardened Rails and is all set for commercial production. JSPL being the only producer of Head Hardened Rails in the country, is poised to play an important role in the growth of India’s rail infrastructure.”
For the quarter ended March 31, 2016, the company reported a consolidated net loss of Rs 371.34 crore against net loss of Rs 519.30 crore in the corresponding quarter a year ago. Net sales of the company jumped by 5.84 per cent year-on-year to Rs 4742.62 crore for the quarter under review against Rs 4481.03 crore in the same quarter last year. The company will announce its financial results for the quarter ended June 30, 2016 on September 8.
JSPL is engaged in the business of steel, power, mining, oil and gas and infrastructure.