JSL FY11 dips 19% to Rs 319 cr on lower exchange gain

JSL Stainless today reported 19% dip in consolidated net profit at Rs 319 crore in FY11 on lower exchange gain, a senior company official said.

"Our profit before tax and exceptional item grew by 30% during the fiscal. However, net profit fell by 19% to Rs 319 crore due to lower gain in foreign exchange fluctuations," JSL Stainless finance director Arvind Parakh told PTI.

The Ratan Jindal-led firm had clocked a Rs 292 crore forex gain in 2009-10. This came down to just Rs 75 crore impacting the bottomline of the company.

JSL Stainless' net sales in FY11, however, increased by 23% to Rs 7,534 crore against Rs 6,149 crore in FY10. Of the total Rs 8,016 crore gross sales, Rs 5,990 crore came from the domestic market and the remaining from exports.

JSL's stainless steel sales volume grew by 6% during the year to 6.4 lakh tonnes over FY10.

JSL expects demand for stainless steel in current fiscal to go up by 13% backed by strong demand from transportation, construction, white goods and infrastructure sectors.

The demand for stainless steel in India, which consumed 20 lakh tonnes last fiscal, grew by around 10% in the last fiscal. Globally, stainless steel consumption is around 310 lakh tonnes.