JSPL falls after company records Q4 net loss of Rs 519 crore

28 May 2015

Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) today fell as much as 4.09 per cent in intraday trade on Thursday after the company on Wednesday reported a consolidated net loss of Rs 519.30 crore for the quarter ended March 31, 2015 due to subdued demand and cheaper imports of the metal.

The firm has posted a net profit of Rs 402.50 crore in the year-ago period, it said in a BSE filing.

Consolidated total income also fell by 7.6 per cent to Rs 4,525.59 crore in January-March quarter of last fiscal from Rs 4,898.48 crore in the same quarter of 2013-14.

In a separate filing, JSPL said its Board of Directors have " approved issuance of Non-Convertible Debentures up to Rs 10,000 crore". It also said "... approved issuance of further securities up to Rs 5,000 crore".

It is subject to shareholder approval, it added.

For the entire 2014-15 fiscal, JSPL's consolidated net loss stood at Rs 1,278.12 crore as against a net profit of Rs 1,910.36 crore.

Total consolidated income of the company rose marginally to Rs 19,400.67 crore from Rs 19,286.31 crore.

During the January-March 2014-15 quarter, JSPL's crude steel production rose by 45 per cent to 1.1 million tonne (MT) compared to the same quarter of 2013-14. Production of sponge iron rose by 18 per cent to 0.87 MT, while steel sales were up 23 per cent to 0.95 MT during the same period.

For entire 2014-15, crude steel production rose by 25 per cent to 3.62 MT compared to 2013-14. Sponge iron production was up 10 per cent to 3.08 MT and steel sales grew by 15 per cent to 3.23 MT during the same period.

On steel, the firm said: "Q4 2014-15 saw several adverse factors come together and negatively impact the company's financial performance."

Continued subdued demand and unabated steel import from China, Korea and other countries saw net realisation plummet by more than 7 per cent year-on-year and a proportional drop in the sales turnover, it added.

On the power segment, JSPL said that all 4 units of the 600 MW were synchronised and 3 units were commissioned.

"However due to shortage of coal and non-availability of PPAs (Power Purchase Agreements), the phase II of 4x600 megawatt (MW) was operated only at part capacity," it added.

Its sales turnover from power rose by 43 per cent to Rs 774 crore in the fourth quarter of last fiscal compared to the same period in 2013-14. For the entire 2014-15 fiscal sales turnover rose by 31 per cent to Rs 3,228 crore.

Additional coal levy hit profits from the power business.

On outlook, it said: "Indian economy and steel demand are expected to gather momentum from the start of third quarter of 2015-16 fiscal."

It expects raise its steel production by 50 per cent to 5 MT in 2015-16, subject to favourable economic conditions.

Reopening of mines in Odisha and Karnataka is expected to ease iron ore availability and its prices, it added.