JSPL Q2 profit up 1.3% to Rs 903 cr

Subdued steel demand during the quarter pulls the company's profits down

Jindal Steel and Power Ltd (JSPL) registered a marginal 1.3 per cent increase in net profit for the quarter ended September as lower capacity utilisation of power plants pulled down profitability of the power segment. It posted a net profit of Rs 903.4 crore compared to Rs 892 crore last year.

“The marginal profit increase is attributed to the lower plant load factor (PLF) of our plants during the quarter. PLF came down to 85 per cent against 92 per cent in the second quarter last year,” Sushil Maroo, chief financial officer, said.

He also added that the dip in performance of power segment has been “more than compensated” by the increased steel production. Production of steel products jumped 10 per cent to 6,89,000 metric tonne during the quarter. Hot metal production jumped 9 per cent to 4,51,000 metric tonne.

Total income of the company increased 5.2 per cent from Rs 4,423.2 crore in second quarter last fiscal (2011-12) to Rs 4,655.2 crore in the second quarter this year. However, inventory of steel products increased by 58 per cent to 4,99,000 metric tonne during the three month period as subdued economic activity pulled down consumption from key sectors including construction, Maroo said.

The company’s share price at the Bombay Stock Exchange (BSE) on Friday closed at Rs 382.4, down 0.1 per cent as compared to previous close.