Jindal Saw today posted a decline of over 47% in net profit at Rs 53.73 crore in the second quarter of the current fiscal due to depreciation in rupee against dollar and costlier raw material.
The pipe maker had reported a net profit of Rs 102.15 crore in the corresponding quarter of the last fiscal, Jindal Saw said in a statement.
Attributing the decline in net profit to price volatility and inadequate availability of raw materials, higher petroleum prices and significant weakness in Indian rupee against the US dollar, it said these "are likely to remain major issues in the short to medium-term".
"In addition of this, the global economic turmoil is likely to affect the sector and thus we anticipate that this trend of weakness may continue for some time now," it said.
Raw material consumption increased to Rs 1,002 crore over Rs 678 crore in the corresponding quarter last fiscal. Jindal Saw posted a forex loss of Rs 48.29 crore.
Jindal Saw's net sales rose to Rs 1,446 crore over Rs 801 crore in the July-September quarter of the last fiscal.
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The total expenditure also rose to 1,309 crore in the quarter under review from Rs 650 crore in the year-ago period.
The company said that the demand for pipes was expected to improve gradually.
"Due to mismatch in demand and supply,there are pressures on realisations and profitability," it said.
The net debt of the company was around Rs 2,550 crore as on September 30.