JSPL cuts 750 jobs after reporting Rs 1,675-cr loss in Dec quarter

Steel maker Jindal Steel and Power (JSPL) has cut 750 jobs, as the company reported Rs 1,675-crore consolidated loss for the quarter ended December 2014. The loss is attributed to the payment for the Supreme Court (SC)-imposed penalty on the coal block allocation scam.

"As a result of SC's decision to impose additional levy retrospectively, JSPL was forced to pay a lump sum amount of Rs 3,089 crore, which caused it to post a loss of Rs 670 crore (standalone) and Rs 1,675 crore (consolidated)," the company said in a release.

JSPL had reported Rs 559 crore profit after tax in the December 2013 quarter.

The turnover also fell two per cent to Rs 5,045 crore in the quarter under review from Rs 5,142 crore a year ago.

"The company during Q3 (third quarter) undertook multiple steps to reduce its costs, including reduction of manpower by over five per cent," the statement added.

According to sources, JSPL has around 15,000 employees. The Q3 results were also affected by substantially higher costs on account of depreciation and interest. Interest costs went up to Rs 702 crore in the December 2014 quarter from Rs 403 crore a year ago. Depreciation and amortisation costs rose to Rs 715 crore from Rs 460 crore in the same period.