JSPL Q2 net up 2.50% at Rs 897 cr

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

Jindal Steel and Power (JSPL) today reported a marginal growth of 2.5% in consolidated net profit to Rs 897.28 crore for the quarter ended September 30, largely due to subdued steel demand during the quarter.

The Naveen Jindal-led company's consolidated net profit includes minority interest and share of profits in associates. During the corresponding quarter of the last fiscal, JSPL had reported a net profit of Rs 875.37 crore.

Net sales of the company was up 4.55% to Rs 4,606.93 crore during the quarter against Rs 4,406.61 crore in the July-September period of FY12, it said in a filing to the BSE.

 

During the quarter, the company's expenses increased by nearly 9% to Rs 3,327.63 crore, while its finance cost rose by over 26% to Rs 158.83 crore. JSPL's tax outgo also increased by over 13% to Rs 343.70 crore during the quarter.

In a separate statement, the company said its production of steel products grew by 10% to 6.90 lakh tonnes (LT) during the quarter. Against this, sales growth of the company was 7% as it managed to sell 6.39 LT steel products during the period under review.

Besides, the company's inventory of steel products increased by over 58% to 4.99 LT during the quarter.

The company, however, reported a 54% growth in power production to 1,457 million kWh, while its power sales was up 146% to 547 million kWh.

Moreover, its subsidiary Jindal Power achieved a profit after tax of Rs 260.25 crore and a turnover of Rs 565.06 crore during the second quarter of FY13, JSPL said.

The firm is also commissioning the fourth unit of its power plant in Odisha's Angul district, having a capacity of 135 MW, today.

Meanwhile, in an another filing to the BSE, the company said that it has appointed Sudershan Kumar Garg as an independent director and Dinesh Kumar Saraogi as a whole time director on its board.

Besides, two existing whole time directors of the company, Vikrant Gujral and M L Gupta have resigned with immediate effect, it added.

Shares of the company were trading at Rs 385.40 apiece on the BSE at 1345 hours, up 0.67% from the previous close.