Business Daily from THE HINDU group of publications
Sunday, Nov 01, 2009
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Business Daily from THE HINDU group of publications Sunday, Nov 01, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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Financial Performance Corporate Results - Steel Jindal Steel & Power’s net pulled down 32% by lower price realisations Our Bureau New Delhi, Oct. 31 Despite recording higher sale of steel products, lower price realisations have hurt the net profits of Jindal Steel and Power Ltd (JSPL). The company’s standalone net profit for the quarter ended September 2009 dipped 32 per cent to Rs 305 crore from Rs 450 crore in the same quarter last year. However, the company’s consolidated net profit, which also includes profits from its power business, was up 6 per cent. The consolidated net profit was Rs 808 crore against Rs 762 crore in the same quarter last year. Standalone net sales for the quarter were Rs 1,598 crore, lower by almost 28 per cent from Rs 2,216 crore in the same quarter the previous year. Consolidated net sales for the quarter stood at Rs 2,445 crore, down by about 14 per cent from Rs 2,859 crore in the corresponding quarter last year. Commenting on the performance, Mr Sushil Maroo, Director of JSPL and Deputy Managing Director, Jindal Power Ltd, said, “Compared to the same quarter last year, steel price realisations have come down 43 per cent. This has been reflected in lower standalone profits this quarter. But our power business is doing very well. Almost 70 per cent of our consolidated profits have come from our power business.” Mr Maroo added that though there is a dip in the year-on-year comparison of net profits, there has been an increase when compared to last quarter. Regarding the demand for steel in the country, Mr Maroo said, “With the Government focusing on increasing infrastructure, demand is picking up. But prices for long products are still under pressure. However, prices should remain stable in the coming months.” The company’s expansion plans for its power business remain on track. Jindal Power Ltd announced a further brownfield expansion of 2400 MW at its power plant in Raigarh, Chattishgarh at an estimated project cost of Rs 13,410 crore. The project will be carried out in stages during 2012 and 2013 and a debt of Rs 10,057 crore would be raised for carrying out the expansion. The company’s standalone net profit for the half year ended September 2009 stood at Rs 605 crore, almost 29 per cent lower than Rs 852 crore in the same period last year. Standalone net sales for the half-year were Rs 3,174 crore, a dip of 23 per cent over Rs 4,111 crore in the same period last year. Jindal Steel and Power: Hold Steel imports nearly double in July to 5.6 lakh tonnes Jindal Steel profit surges More Stories on : Financial Performance | Steel | Jindal Steel & Power Ltd
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