JSPL's net rises 4% to Rs 1,002 cr

Jindal Steel and Power has reported a consolidated net profit of Rs 1,001.7 crore, up by four per cent for the fourth quarter ended March 31. The consolidated turnover for the given quarter shot up by 21 per cent to Rs 3,854.54 crore.

The total expenditure of the company stood at Rs 2,461.55 crore for the quarter ended March 31, as against Rs 1,919.89 crore for the same period last year.

Director and group CFO Sushil Maroo said, "The rise in the profit and the turnover is mainly because of the contribution from the steel business." Outlining the performance of the power business, he said, "The tax on power, on an average, for 2010-11 was at Rs 4.40 per unit and we expect the tax to be Rs 4 per unit for the current financial year."

The company is planning to spend Rs 9,000 crore for its various expansion plans in the current year. The major portion of this capital expenditure will go to the power sector.

"We have three projects lined up in the current year and will spend Rs 7,000 crore for the power business," Maroo said. He said the company will start selling iron ore from its Bolivian mines from this quarter itself and will also spend to set up a 5 million tonne pellet plant in the country.

"We will use internal accruals and some debt for the expansion plans," he said.

The company is adding 1.5 million tonne plate mill to its already existing 3 million tonne steel capacity and a two million tonne DRI plant by the end of the current year.