The company posted a consolidated loss of Rs 339 crore in the quarter ended June against net profit of Rs 418 crore in the same quarter last year.
Jindal Steel & Power (JSPL) posted a muted set of earnings in Q1. Ravi Uppal, managing director and chief executive officer, says the company's huge debt resulted in poor profit levels.
The company posted a consolidated loss of Rs 339 crore in the quarter ended June against net profit of Rs 418 crore in the same quarter last year, impacted by dismal operational performance and higher finance cost.
Uppal says, "At this point, given our present level of deb, we do have extraordinary burden and that is the only reason that inspite of having a very good EBITDA, we are still not able to post a positive PAT, but I am certain that as larger PLF of the power plant and total deliverables from the steel plants also increase we will be able to come to an EBITDA level that we will be able to neutralise."
In spite of higher sales volumes, revenue declined 3 percent to Rs 4,715 crore (including captive sales for own projects) compared to Rs 4,876 crore due to decline in net sales realisation.
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