JSW ISPAT Steel turns profitable in Q4 on huge tax credit

Moneycontrol Bureau

JSW ISPAT Steel has turned profitable in the quarter ended June 2012. The company has posted a profit of Rs 478 crore in the quarter as against loss of Rs 1130 crore in a year ago period, mainly led by tax credit worth Rs 779 crore.

Net sales rose by 18.4% year-on-year to Rs 2,855 crore. Post the result announcement, the company stock was up 4% to Rs 10.63.

The company said its numbers would have been had there not been a loss of Rs 188 crore during the quarter.

Meanwhile, the company's chairman Sajjan Jindal told media persons on the sidelines on the 18th annual general meeting held recently that he expects JSW Ispat to become profitable by the end of FY 2013. 'As soon as it becomes profitable, we will start looking at merging it with its parent company JSW Steel," Jindal said

JSW Steel acquired a controlling stake in erstwhile Ispat Industries in December 2010 at an enterprise value of $3 billion to emerge as the country's largest producer of the alloy with an annual capacity of 14.3 million tonne.