Jindal Steel & Power Ltd (JSPL) shares rose over 3 percent on Thursday after it reported 30 percent year-on-year growth in quarterly sales of crude steel and related products in the third quarter ended December 2019 along with highest ever quarterly domestic production.

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The stock gained as much as 3.42 percent to touch intraday high of Rs 172 per share on the BSE.

The company’s total sales in Q3FY20 stood at 1.66 million tonnes as against 1.27 MT in the same period last year. Export shipments during the quarter increased to more than 3 lakh MT, registering an increase of 213 percent YoY.

“Being the most challenging quarter, where core sector output fell for the fourth straight month to a dip of 1.5 percent and steel growth rate of -3.4 percent in November 2019, JSPL’s demonstrated a robust performance,” the company said in a regulatory filing.

The company also recorded its highest ever quarterly domestic production of crude steel and related products with a 22 percent year on year growth in Q3FY20, as a result of the strong and consistence performance across all locations, especially in the Angul operations, it said.

The total crude steel and related production stood at 1.61 million tonnes, compared to 1.32 million tonnes in the corresponding period last year.

"We are going to start our DRI-CGP (Coal Gasification plant) unit at Angul during January 2020, and together with a favourably evolving product mix, we expect to further drive growth in sales and profit,” said VR Sharma, managing director, Jindal Steel & Power Ltd.

JSIS-Oman also observed highest ever sales & production during Q3FY20, it added.

Steel sales increased by 27 percent on year to 0.572 million MT and steel production increased by 10 percent to 0.502 million MT.

"As we begin 2020, we are excited about the prospects, and confident that the coming quarter would be even much better for JSPL Union finance minister Nirmala Sitharaman recently unveiled Rs 102 Lakh crore of projects under National Infrastructure Pipeline, which is to be implemented in the next five year as part of the government’s spending push in the infrastructure sector,” Sharma said.

He further expects that increased demand from infrastructure projects especially for segments like railways, defense, petroleum, and pipelines will certainly drive steel demands for JSPL.

At 9:50 am, shares of Jindal Steel & Power were trading 2.13 percent higher at Rs 169.85 on the BSE.