Jindal Stainless Q1 PAT down 65.6% at Rs 28.4 cr

Jindal Stainless has announced its first quarter numbers. Its profit after tax, PAT went down by 65.6% at Rs 28.4 crore for the quarter ended June 2008 as against Rs 82.6 crore in same period of last year.

Sales were up by 31.8% at Rs 1577.4 crore from Rs 1196.8 crore. Operating profit rose at Rs 232.4 crore from Rs 204.2 crore and operating profit margin declined at 14.7% versus 17.1%.

Analysis:

Margins decline due to increase in staff cost & decrease in stock in trade

Staff cost up 39% at Rs 32.9cr vs Rs 23.7cr

Other Income declined 1.7% to Rs 4.59cr

On account of foreign exchange fluctutation, Interest includes notional loss of Rs 59.77cr

Developments: 

Would invest up to $ 200 mn in one or more subsidiaries by way of equity or debt in the next 2-3 years

65:35 JV agreement has been signed between the company and Fagor Industrial S Coop, Spain respectively to develop service centre in Spain.