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Business News/ Companies / Naveen Jindal’s JSPL posts Rs371.34 crore loss in March quarter
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Naveen Jindal’s JSPL posts Rs371.34 crore loss in March quarter

The company attributed its sixth straight quarter of losses to higher fuel and finance costs

Earlier, Sajjan Jindal-led JSW Energy Ltd had said it will buy 100% of Jindal Steel and Power’s 1,000 MW thermal power plant in Chhattisgarh. Photo: BloombergPremium
Earlier, Sajjan Jindal-led JSW Energy Ltd had said it will buy 100% of Jindal Steel and Power’s 1,000 MW thermal power plant in Chhattisgarh. Photo: Bloomberg

Mumbai: Jindal Steel & Power Ltd (JSPL) on Wednesday reported consolidated net loss for the March quarter narrowed to 371.34 crore from 519.30 crore a year ago.

The Naveen Jindal-led company attributed its sixth straight quarter of losses to higher fuel and finance costs.

Net sales in the quarter rose 6.1% to 4,948.15 crore from 4,663.65 crore a year ago.

A Bloomberg poll of nine analysts had estimated a net loss of 407.60 crore and net sales of 5070.10 crore.

“Increased fuel and finance cost due to borrowing for payment of additional coal levy over 3300 crore arising out of cancellation of coal blocks by Supreme Court and reduction in steel price to an unsustainable level contributed to loss in the financial result", the company said in a notice to BSE.

Fuel cost jumped by 49.8% from a year ago to 1083.58 crore while the finance cost went up by 11.36% to 858.40 crore. Total cost rose by 10.7% to 4912.19 crore.

With the improvement of global steel prices and the introduction of a minimum import price by the government, steel prices are expected to stabilize to a sustainable level, which will improve financial health and lead to optimum capacity utilization by domestic steel manufactures, the company said in its outlook.

Earlier, Sajjan Jindal-led JSW Energy Ltd had said it will buy 100% of JSPL’s 1,000 megawatt (MW) thermal power plant in Chhattisgarh at an enterprise value of 4,000 crore, in what is seen as a bailout for younger brother Naveen Jindal’s struggling business, Mint reported on Wednesday.

The sale of the plant, owned by JSPL unit’s Jindal Power Ltd, will help the former meet interest payment obligations and pare overall debt, the report added.

On Wednesday, shares of JSPL fell 3.48% to 66.60 on BSE, while India’s benchmark Sensex shed 0.51% to close at 25,101.73 points.

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Published: 04 May 2016, 11:41 PM IST
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