JSPL pounded to 6-year low

Jindal Steel & Power Ltd (JSPL) hit a 6-year low today at Rs.124 – the lowest since Jan 2009. And it continues to remain at the same level, showing that disenchantment is deep.

The stock has been pounded into the red after the company reported a consolidated net loss of Rs.519 crore for Q4FY15 v/s net profit of Rs.1619 crore in Q4FY14. Total income too dropped 8% at Rs.4526 crore.

In the Press statement, the company has stated that persistent low demand and unabated steel import from China, Korea and other countries, led to an over 7% (YoY) fall in net realization and a proportional drop in sales turnover. The iron ore due to closure of mines in Odisha remained scarce and witnessed an unprecedented rise in its price. The prices of semi and fully finished steel touched all time low levels in both domestic and international markets. Additional levy of Rs.1912 crore also impacted performance.