Jindal Stainless today posted over 70 per cent plunge in net profit at Rs 18.55 crore for the fourth quarter of 2011-12 due to depreciation of rupee and higher cost of chrome ore and coal.
The company had clocked a net profit of Rs 65.63 crore in the same quarter of previous fiscal,it said in a statement. “The overall lower performance is attributable to unprecedented increase in the raw material prices of chrome ore and coal,and adverse exchange fluctuations arising on account of sharp depreciation of Indian rupee,” it said.
Jindal Stainless said the government policy of keeping the interest rates at higher levels has clogged the expansion of the markets. Aggressive price under cutting and dumping of cheap quality products from China and Far-East Asia also impacted.
Total income from operations of the company during the quarter,however,were up at Rs 2,166 crore against Rs 1,742 crore in the January-March quarter of the previous fiscal.
Jindal Stainless’ consolidated income in 2011-12 was at Rs 8,765 crore against Rs 7,532 crore a year ago. However,it reported Rs 180 crore loss during the year compared to a net profit of Rs 314 crore in 2010-11.