Jindal Steel

Jindal Steel and Power Ltd (JSPL) had hit a new 52-week low on the back of its disappointing numbers. Its consolidated net profit declined 35% at Rs.760 crore on a mere 2.16% growth in net sales at Rs.5583 crore. Lower sales growth plus a burgeoning interest outgo, which rose 85% at Rs.239 crore also dented the profits. What also did not help was the lower sales realizations. Its gross revenue from steel was up 10% but that from power was down 12%. In fact its realisations from power business came down to Rs. 3.17 per unit in Q4 compared to Rs.4/unit in Q4FY12. The average realisation from steel was Rs. 35,000 per tonne in Q4.

The company is planning to commission all four units of its upcoming 2,400 MW power plant in Chhattisgarh by the end of FY14, taking its production capacity up at 4,969 MW.And in steel too, it is planning to ramp up capacity to 7 million tonnes per annum (MTPA) by adding 2 MT capacity at Odisha's Angul and another 2 MT capacity in Oman by Q2FY14. For FY13, the company reported a 27% decline in consolidated net profit at Rs. 2,910 on a 8% rise in net sales at Rs.19,554 crore.  Given the current coporate governance issues dogging the company, little wonder then that it remains in the red.