Jindal Stainless logs Rs 231 cr net loss

Jindal Stainless reported a net loss of Rs 231.41 crore for the quarter.

Written by Agencies | Published: August 9, 2012 10:09:03 pm

Jindal Stainless (JSL) today reported a net loss of Rs 231.41 crore for the quarter ended June 30,2012,due to host of reasons,including higher interest payments and forex losses.

The largest domestic stainless steel producer had posted a net profit of Rs 85.79 crore in the same quarter of the last fiscal.

Net sales of the company,however,rose by 11.62 per cent to Rs 2,206.69 crore during the quarter vis-a-vis Rs 1,976.93 crore of the April-June period of FY’12,it said in a filing to the BSE.

During the quarter,company’s interest payments increased by nearly 78 per cent to Rs 207.11 crore.

Besides,it reported an exceptional loss of Rs 209.13 crore,which was attributed by the company as forex losses,lower margin due to increase in power and fuel costs,surge in imports of stainless steel flat products in the country and its production capacity at Odisha under ramp up.

In its filing,the company also said it is in the process of seeking approval from its lenders to rework on its debt obligations.

“Once approved,the reworking scheme would entail increase in interest cost with effect from April 1,2012.

Pending necessary approvals and signing of fresh agreements/documents,presently interest cost has been provided at prevailing contracted rates,” it said.

In a separate statement,JSL said its production at 2.34 lakh tonnes was higher by 12 per cent during the quarter.

“The global sentiments are restrained but there are ample opportunities for integrated players like Jindal Stainless for growth. We,at Jindal Stainless are very confident and geared to encash the future market opportunities,” it added.

Shares of the company closed at Rs 64.45 apiece on the BSE,down 3.59 per cent from the previous close.

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