Naveen Jindal-led Jindal Steel & Power Ltd (JSPL) today said its consolidated net loss narrowed to Rs 745.98 crore for the quarter ended September 30.
Naveen Jindal-led Jindal Steel & Power Ltd (JSPL) today said its consolidated net loss narrowed to Rs 745.98 crore for the quarter ended September 30.
The firm had posted a net loss of Rs 909.53 crore in the year-ago period, it said in a BSE filing.
Total consolidated income of the firm fell to Rs 4,665.54 crore during the July-September quarter this fiscal from Rs 4,736.29 crore during the same quarter in 2015-16.
Its total expenses were higher at Rs 4,815.75 crore during the quarter under review as against Rs 4,577.96 crore in the same period last year.
"JSPL is committed to meet all its debt commitments and the company is aiming to bring down the annual cash outflow in terms of repayments and interest by utilising various schemes provided by the government, including but not limited to 5/25, 75:25 and S4A," it said in a statement.
For overseas debt, the firm is in constant discussions with its lenders to restructure and refinance its loans, it added.
On outlook, it said: "Although the recent demonetisation may adversely impact demand for construction steel in the short term, the steel demand is expected to bounce back in early Q4." On the supply side, this change may result in curtailment of supply from the unorganized secondary rollers, while on the demand side, the government spending should see a fillip with massive funds flowing into the country's financial system, it added.
The move may also lead to a rate cut which could provide further momentum to private spending on capital assets, which has nearly dried out over the past year, JSPL said.
Although prices of coking and thermal coal have increased dramatically, its impact on JSPL will be much less compared to competition as 70 per cent of steel produced by JSPL is from DRI, which uses domestic coal, it added.
With the general increase in prices of steel, JSPL with its relatively low average cost is expected to improve its steels margins, it said.
On the power side, demand uptick remains a concern, which could change with UDAY easing debt burden of SEBs, to come out with more PPAs and Industrial production looking up on back of good monsoons, it added.
The rate cuts should provide impetus to more industrial activity and energy demand growth in the country, JSPL said.
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