New Delhi: Jindal Steel and Power (JSPL) on Thursday said its consolidated net loss doubled to Rs1,082.15 crore for the June quarter on account of decline in demand as well as higher fuel and finance costs. The Naveen Jindal-led firm had posted a net loss of Rs542.42 crore in the same quarter a year-ago, it said in a BSE filing.
Total consolidated income was higher at Rs 4,655.45 crore in April-June quarter this fiscal from Rs4,405.73 crore during the corresponding period of 2015-16. Total expenses ware higher at Rs4,588.48 crore from Rs4,392.58 crore earlier.
“Increased fuel and finance costs due to borrowing for payment of additional coal levy over Rs3,300 crore arising out of cancellation of coal blocks by Supreme Court of India and lower steel prices continued to contribute to loss in financial results,” it said.
On sales, the firm said the June quarter saw a “tepid growth” in domestic steel demand (0.4% year-on-year), which under-paced the production ramp up during the quarter.
“Impact was more pronounced in the long products segment as orders declined with the onset of monsoons across India. As against industry’s expectations of import substitution driving good growth in the quarter after the imposition of the minimum import price, imports from China, Korea and Japan fell only by a third,” it added.
The company reported a production of 1.2 million tonnes (MT) and sales of 1.1 MT in the June quarter.