The Hindu Business Line : Jisco, Jindal Vijaynagar post higher net in Q2

JINDAL Iron & Steel Company Ltd (Jisco) and Jindal Vijayanagar Steel Ltd (JVSL), the two steel majors from the Sajjan Jindal controlled-JSW Group, today reported higher net profits.Jisco showed a net profit of Rs 60.45 crore for the quarter ended September 30, as against Rs 45.46 crore in the previous corresponding quarter. Net sales/income from operations was Rs 738.88 crore (Rs 500.27 crore ).

JVSL posted a net profit of Rs 81.11 crore (Rs 23.41 crore) on net sales/ income from operations of Rs 1,135.56 crore (Rs 825.98 crore).

The two companies and Jindal Stainless are looking to invest about $100 million in coking coal mines abroad, aggregating five million tonnes capacity. Six parties from Australia and two from Canada have been shortlisted for the prospective joint venture. " We won't hold majority stake,'' Mr Sajjan Jindal, Chairman & Managing Director, Jisco, said at a press briefing.

Currently, these companies spend $300 million annually for three million tonnes of imported coking coal.

JSW Holdings, born from demerging Jisco's investment division, has the scope to be a holding company for the JSW Group. It will have a 13 per cent stake in the new entity (to be called Jisco) once JVSL and Jisco are merged. "Nothing more is planned at present on JSW Holdings' role,'' Mr Seshagiri Rao, Director (Finance), JVSL, said.

Post-merger there will be two listed companies — Jisco and JSW Holdings. Total promoter stake in Jisco, including that of JSW Holdings, will be 45 per cent as against the 55 per cent and 41 per cent currently held individually in Jisco and JVSL. While the Mumbai High Court has approved the merger, hearing at the Karnataka High Court is set for October 28.

At a consolidated level, the second quarter results of the two companies amount to a net profit of Rs 132.79 crore on net turnover/income from operations of Rs 1,498.56 crore.

According to an official statement, Jisco sold 3.31 lakh tonnes of GP/GC, recording a volume growth of 29 per cent over last year.

Exports accounted for 75 per cent of production and export sales for the quarter at Rs 568.05 crore was up 58 per cent.

JVSL had the same level of crude steel production as last year, which officials ascribed to a lower melt rate at plants caused by monsoon related hiccups in coal handling at port.