Jindal Vijayanagar Steel (JVSL) has reported a net loss of Rs 133.26 crore in the first quarter ended June 30, 2001, compared with a net loss of Rs 25.39 crore in the corresponding period of previous fiscal. Net sales was at Rs 392.88 crore (Rs 388.11 crore).
JVSL has seen a jump in volumes, both in production and sales, by around 25 per cent and 20 per cent, respectively, in the first quarter.
Despite adverse market conditions and over-supply conditions, JVSL is able to push up the volumes on account of its competitive advantages.
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It is also focusing to reduce its cost of production by another Rs 500 per tonne in the second quarter by optimum utilisation of corex gas, it said.
The cost of production has come down by 9 per cent relative to that in the corresponding period mainly on account of usage of captive pellets in lieu of bought-out pellets.
Slackening demand and over-supply situation depressed the net sales realisations by over 20 per cent. Profit before interest, depreciation and tax continues to be positive at Rs 65.97 crore on a gross total turnover of Rs 393.62 crore.
The interest and finance charges went up to Rs 117.65 crore against Rs 50.13 crore in the corresponding period, resulting in a net cash loss of Rs 51.68 crore.