Jindal Steel dips on weak Q1 earnings
The company made a provision of Rs 574 crore for its impaired investment in Bolivia during the quarter
Jindal Steel and Power Limited (JSPL) has dipped 4% at Rs 398, its lowest level since June 2009, after reporting 59% year-on-year (yoy) fall in consolidated net profit at Rs 385 crore for the quarter ended June 2012, due to a provision of Rs 574 crore for its impaired investment in Bolivia. The company had reported a net profit of Rs 933 crore in a year ago quarter.
Total consolidated income increased 19% to Rs 4,719 crore for the June 2012 quarter on year-on-year basis.
“The company wrote off Rs 574 crore in the quarter, equal to its investment in developing a 20 billion metric ton Bolivian iron ore mine. The company last week terminated the project, which included building steel and power plants,” JSPL said in a filing.
The stock opened at Rs 406 and is currently trading at day’s low level on the National Stock Exchange. A combined 2.67 million shares have changed hands on the counter till early noon trades.