JSPL posts 39% drop in net profit at Rs 477 cr for fourth quarter

Company's income from operations in Q4 increased only by 1%

Jindal Steel & Power Ltd (JSPL) has posted 39% drop in its net profit at Rs 477.45 crore for the fourth quarter ended March 2013 as compared to Rs 783.62 crore in the same quarter previous year, mainly due to declining steel prices.

The company’s income from operations during the fourth quarter 2012-13 increased just by 1% to Rs 4,213.70 crore against Rs 4,174.02 crore in the same quarter last year.

For the year ended March 13, the net profit declined by 35.19% at Rs 752.75 crore against Rs 1161.53 crore for 2011-12. The income from operations grew by 3% to Rs 5648.44 crore for the year ended March, 2013 against Rs 5482.33 crore for year ended March 2012.

JSPL board has also announced a final dividend of 160% or Rs 1.60 for each share of Re 1 for 2012-13.
The company said it will increase its steel capacity from 3.5 MTPA to 7.0 MTPA in 2013‐14, while the power production capacity would double during 2013‐14 from 2,434 MW to 4,969 MW.

During the year, JSPL forayed in the retail segment and appointed 15 distributors to kick off channel sales.

“Notwithstanding a global economic slowdown and subdued steel market, maintained a double digit growth in their steel business. With relentless commitment to operational excellence achieved 100% utilization of steel and pelletisation capacity,” the company said in the statement.

The company’s stocks were marginally down today by 0.03% and closed at Rs 328.80 on Bombay Stock Exchange.