JSPL net profit declines 13% to Rs 1,692 crore in Q1 due to high expenses

Private steel player Jindal Steel and Power Ltd (JSPL) on Friday posted a 13 per cent decline in consolidated net profit to Rs 1,692 crore for the June quarter due to higher expenses.

It had clocked a net profit of Rs 1,990 crore in the April-June period a year ago, the company said in a regulatory filing.

The company's total income was at Rs 12,643 crore in the first quarter of the current fiscal compared to Rs 13,069 crore in the year-ago period.

Its total expenses rose to Rs 10,876 crore from Rs 10,566 crore.

"We have achieved a significant milestone of successfully commissioning our state-of-the-art pellet plant at Angul (Odisha).

"We have also signed mining lease for two thermal coal mines -- Gare Palma IV/6 and Utkal C -- which will lead to consistent availability of coal for our thermal coal requirements in DRI (Directly Reduced Iron) kilns, coal gasification and power plants at lower costs," JSPL Managing Director Bimlendra Jha said in a statement.

During the quarter, the company's steel production rose 2.5 per cent to 2.04 MT, from 1.99 MT a year ago. Sales grew 5.74 per cent to 1.84 MT as compared to 1.74 MT.

JSPL said its Chirodzi mine in Mozambique produced 1.12 Million Tonne Run Of Mine (MT ROM), up 14 per cent over 0.98 MT ROM in the March quarter.

In South Africa, the Kiepersol mine produced 116 KT ROM in the June quarter as against 115 KT ROM in the preceding three months.

JSPL's Russel Vale mine in Australia produced 132 KT ROM in the three months ended June compared to 157 KT ROM in the March quarter.

Shares of the company closed at Rs 698.40 apiece on the BSE, up 3.28 per cent from its previous close.