The Hindu Business Line : Jindal Vijayanagar Q4 net rises 57.36 pc

JINDAL Vijayanagar Steel Ltd (JVSL) today reported a net profit of Rs 404.14 crore for the fourth quarter ended March 31, 2005, against Rs 256.82 crore in the same period the previous year.

It has recorded net sales of Rs 2,182.82 crore (Rs 967.42 crore).

The company's net profit for the year ended March 31, 2005, rose to Rs 870.11 crore, against the previous corresponding Rs 528.68 crore.

The company attributed its improved performance to volume growth, cost reduction and efficiency in operations.

The board has proposed a dividend of 10 per cent on cumulative redeemable preference shares amounting to Rs 27.91 crore and a final dividend on equity shares of 50 per cent, amounting to Rs 64.52 crore.

Along with the earlier declared interim dividend of 30 per cent, the total dividend during the fiscal adds up to 80 per cent aggregating Rs 103.23 crore.

JVSL's Chairman, Mr P. R. Jindal, has resigned and in his place, the board inducted Ms Savitri Devi Jindal, wife of the late O. P. Jindal, as the new chairperson.

Mr Anthony Pedder, former CEO of British Steel, has been inducted as an independent director.

The results of the fourth quarter as well as that of the whole year are not comparable with the year ago levels as they include figures of the erstwhile Jindal Iron & Steel Co.

However, an official statement said that this fiscal's net profit was devoid of any exceptional income.

Gross sales for 2004-05 was Rs 7,035.90 crore (Rs 3,590.49 crore), including export sales of Rs 3,293.84 crore (Rs 171.93 crore).

Net sales touched Rs 6,679.36 crore (Rs 3,273.96 crore).

The company's expansion projects include raising steel capacity from 2.5 mt per annum to 3.8 mt by March 2006, expansion of pellet capacity to 5 mt from 4.2 mt and implementation of a one-million-tonne-CR mill complex.

"The cost of this project is estimated at Rs 900 crore and will be financed by internal accruals of Rs 400 crore and debt of Rs 500 crore," an official statement said.

JVSL additionally proposes to get approvals to raise up to $500 million by way of ADR/GDR/FCCB/other instruments with or without conversion to strengthen the company's capital structure and to fund the expansion plans.

RSM & Co and ICICI Securities have been appointed as consultants and the latter along with Deloitte Haskins & Sells as valuers, to evaluate the feasibility of merging Euro Ikon Iron & Steel P Ltd, Euro Coke & Energy P Ltd and JSW Power Ltd with JVSL.

At a press briefing, Mr B.N. Singh, CEO (upstream facilities), JVSL, said that market outlook for steel remained strong though temporary corrections may happen in select geographies.

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