JSPL Q2 net profit down 49.62% to Rs 452 cr

Subdued sales and rise in finance costs led to the decline

Jindal Steel and Power on Wednesday reported 49.62% drop in consolidated net profit at Rs 452.07 crore for the second quarter ended September 30, 2013- 14, largely due to subdued sales and rise in finance costs.
    
The Naveen Jindal led company had reported net profit of Rs 897.28 crore in the July-September quarter of the previous fiscal, 2012-13.
    
Net sales of the company were up 7.43% to Rs 4,949.03 crore during Q2, 2013-14 vis-a-vis Rs 4,606.93 crore in the year-ago period, JSPL said in a filing to the BSE.
    

Total expenditure of the company stood at Rs 3,960.84 crore and amounted to 80 % of its net sales. Besides, its finance costs rose by over 139% to Rs 380.47 crore during the quarter from Rs 158.83 crore in the year-ago period.

    
Company's steel business recorded a growth of 8.89% in revenues to Rs 4,135.26 crore. However, revenues from the power business was down 0.58% to Rs 1,080.46 crore in the quarter.
    
The JSPL scrip closed at Rs 239.20 on the BSE, down 0.58%.