Jindal Steel and Power Ltd. has halved the debt in its Australian arm as it aims to eliminate the metric in the subsidiary by the year ending March 2023.
The company said in an exchange filing it made an advance payment of $105.66 million, or around Rs 777.4 crore, through its subsidiary Jindal Steel & Power (Australia).
JSPL has reduced its net debt-to-Ebitda ratio from 13.3 times in FY16 to 1.5 times to FY21. The metric stood at 0.96x for the quarter ended June.
VR Sharma, JSPL's managing director, was quoted as saying in a statement that the company's paying back lenders before time to strengthen its balance sheet.
“The company's aligned with the India growth story and would want to become a net debt-free company by FY23 through accelerated deleveraging,” he said. “The company plans to expand its steelmaking capacity at its Angul plant to more than 12 MTPA by 2025 through internal accruals.”
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