Jindal Steel and Power, which today reported a marginal growth of 2.5 per cent in its consolidated net profit to Rs 897.28 crore in July-September quarter, plans to add 1.6 million tonnes (MT) new capacity by March.
Jindal Steel and Power , which today reported a marginal growth of 2.5 percent in its consolidated net profit to Rs 897.28 crore in July-September quarter, plans to add 1.6 million tonnes (MT) new capacity by March.
"We plan to add 1.6 MT new steel melting shop at Odisha's Angul by March. After, that our hot metal capacity will increase to 4.6 MT," JSPL Group Chief Financial Officer Sushil Maroo said in a conference call with the media persons.
He forecast a rise in steel prices in the coming quarters as the economic activity in the country is expected to pick up due to recent policy initiatives of the government. JSPL is also looking to raise up to USD 300 million in next six months to meet the capex requirements of its international operations, he said.
The money will be primarily be used at JSPL's coal mine in Mozambique, from where it plans to begin production by next month, he added. "Mozambique mine is going to be operational next month. We will require lot of funds for that as the mine can produce both thermal and coking coal," Maroo said.
"We will be importing first shipment of 50,000 tonnes of coking coal from the mine for our Indian operations," he said.
Talking about company's performance in the July-September quarter, he said net sales increased by 4.55 percent to Rs 4,606.93 crore as demand was traditionally low in the last quarter due to rainy season.
JSPL's net profit was up 2.50 percent to Rs 897.28 crore during the quarter against a net profit of Rs 875.37 crore in the same period of FY'12. The consolidated net profit of JSPL includes minority interest and share of profits in associates.
"It is virtually the same kind of number. Everything remains more or less the same, quarter on quarter, but our international operations have done better," Maroo said.
He added slowdown in the economic activities in the country and high interest regime also impacted company's performance in the last quarter.
During the quarter, the company reported a 10 percent growth in its production of steel products to 6.90 lakh tones (LT). Against this, sales growth of the company was 7 percent, selling 6.39 LT steel products.
Besides, it reported over 58 percent jump in its inventory levels to 4.99 LT in the quarter. "Normally second quarter is a dull quarter and inventory increases but we hope to liquidate the inventory in next 2 quarters," Maroo said.
During the quarter, the company's expenses went up by 9 percent to Rs 3,327.63 crore, while its finance cost rose by over 26 percent to Rs 158.83 crore.
Shares of the company fell by 0.10 percent to close at Rs 382.45 apiece on the BSE today.
Set email alert for
ADS BY GOOGLE
video of the day
Convinced on PSU banks; see new Nifty peak by Jan: Quantum