The Hindu Business Line : JSPL net rises on higher capacity, rising prices

New Delhi, May 27 Jindal Steel and Power Ltd (JSPL) today declared a total dividend of 400 per cent (Rs 4 per share having a face value Re 1) for 2007-08, which includes a 150 per cent interim paid earlier.

The company has posted a net profit of Rs 390.33 crore for the January-March quarter, up 92 per cent compared with Rs 202.77 crore in the same quarter last fiscal.

For the full year 2007-08, the company’s net profit stood at Rs 1,236.96 crore as against 702.99 crore last fiscal marking an improvement of 76 per cent.

Sales rise

Net sales during the fourth quarter increased by 45 per cent to Rs 1,522.97 crore (1,053.92 crore) while for the full year net sales increased by 54 per cent to Rs 5,410.75 crore (Rs 3,519.81 crore).

According to the company’s Director and Head of Finance, Mr Sushil Maroo, the increase in profit is because of capacity increases and also better price realisation.

“The increase is mainly because of increase in capacity and not only because of rising sale prices alone. It is because of volume expansion,” he said.

Output up

During the fourth quarter the company produced 4.57 lakh tonnes of various steel items, an increase of around 65 per cent over the same quarter last year, he said.

For the full year the production increased to 1.4 million tonnes as against 0.8 million tonnes last year.

However, because of rising input costs the company is anticipating pressure on profits in the current year.

“There is likely to be a cost push in the first two quarters. I don’t think sales prices will go up,” Mr Maroo said. He, however, added that the pressure exerted by rising input costs will to a certain extent get offset by increase in volumes during these two quarters.

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