JVSL in black, Q3 net at Rs 225.53 crore

Jindal Vijayanagar Steel (JVSL) has posted a net profit of Rs 225.53 crore in the quarter ended December 31, 2003 compared with a net loss of Rs 59.88 crore in the same quarter of previous year.

The company has recorded an exceptional item of Rs 226.28 crore in the quarter ended under review. Net sales stood at Rs 788.41 crore (Rs 654.75 crore).

Interest outgo has come down to Rs 115.11 crore (Rs 165.37 crore) as a result of the corporate debt restructuring scheme implemented by the company.

For the nine months ended December 2003, net profit stood at Rs 271.86 crore and net sales stood at Rs 2,312.36 crore.

The figures for the nine months are not comparable with those of corresponding period of the previous year as the commercial operations of pellet and corex-II plants had commenced only in the later part of the corresponding previous year, the company has pointed out.

The exceptional item for the current nine months period represents the benefit on account of settlement of outstanding dues (including waiver of principal amount of Rs 166.83 crore) to certain foreign lenders; and for the previous year, the additional interest expenses on account of revocation of earlier restructuring package.

The company has said that, pursuant to the directions of High Court of Karnataka, a meeting of shareholders and creditors has been convened on January 29 for seeking approval for "the scheme of arrangement and amalgamation" with effect from April 1, 2003, between the company, Jindal Iron & Steel Company and Jindal South West Holdings.

The effect of amalgamation on the financial results would be given upon receipt of necessary approvals from the high court and concerned authorities, the company added.