JSPL Q1 net profit down 20%
Drop due to increase in depreciation and financing costs, and restructuring costs assocaited with its mining operations in Australia
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New Delhi: Jindal Steel and Power Ltd (JSPL) on Wednesday reported a 20% drop in net profit to Rs402 crore in the quarter ended 30 June owing to an increase in depreciation and financing costs as well as restructuring costs associated with its mining operations in Australia.
“Higher interest and depreciation costs on account of the capitalization of our newly commissioned plants, as well as a Rs100 crore hit on account of restructuring costs of Wollongong Coal Ltd (WCL) where we have reduced our manpower by 38%, led to the fall in profits," said Ravi Uppal, chief executive and managing director of JSPL.
The company’s consolidated sales rose 10% to Rs4,978 crore while its operating profit rose by 24 % at Rs1,629 crore. JSPL’s retail sales rose by 284% from year-ago period and exports volumes increased by 6%, JSPL said in a press statement.
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