Jindal Stainless reports Rs 110 cr net loss in Q3

Jindal Stainless today registered a net loss of Rs 110.33 crore in October-December quarter of the current fiscal, largely due to increase in raw materials cost and forex loss.

The leading stainless steel maker had reported a net profit of Rs 89.98 in the same quarter of 2010-11, while in the June-September quarter of the current fiscal, it had reported a net loss of Rs 97.94 crore.

Net sales of the company, however, rose by 10.19% to Rs 1,903.82 crore during quarter under review against Rs 1,727.83 crore in the same period of FY11, it said in a filing to the Bombay Stock Exchange (BSE).

The raw material costs, including that of coal and chrome ore, of the company went up by about 28% in the quarter to Rs 1,384.87 crore, while it incurred a foreign exchange loss of Rs 147.78 crore, the filing added.

It further said profitability was "adversely affected" by higher input prices of chrome ore and coal due to prevailing trade policies of the state and central governments and exchange rate fluctuations.

Expansion of facilities at its Odisha plant also affected the profit margins of the company, it added.

Jindal Stainless, which is expecting to have a production capacity of 2.5 million tonne per annum post completion of the Odisha project, had reported a turnover of Rs 6,818 crore in 2010-11.

Shares of the company closed today at Rs 78 apiece on the BSE, up 1.43%.