Jindal Steel & Power rose 1.68% to Rs 154.75 at 10:25 IST on BSE after the company in its future outlook said it is targeting a double digit growth in turnover in both standalone and consolidated level starting from Q1 June 2015.
The company announced Q3 results after market hours yesterday, 3 February 2015.
Meanwhile, the BSE Sensex was down 77.52 points, or 0.27%, to 28,922.62.
On BSE, so far 2.35 lakh shares were traded in the counter, compared with an average volume of 2.13 lakh shares in the past one quarter.
The stock of large-cap steel manufacturer hit a high of Rs 155.80 and a low of Rs 149.90 so far during the day. The stock hit a 52-week high of Rs 350 on 9 June 2014. The stock hit a 52-week low of Rs 125.05 on 17 December 2014.
Jindal Steel & Power reported consolidated net loss of Rs 1618.78 crore in Q3 December 2014 compared with net profit of Rs 561.51 crore in Q3 December 2013. The company's total income fell 1.38% to Rs 5078.93 crore in Q3 December 2014 over Q3 December 2013. The company's performance during Q3 was negatively impacted due to combination of several adverse developments which interalia include imposition of additional duty on the coal extracted since the start of mining operations in its captive mines, low demand of steel in the domestic as well as export markets and the consequent decline in market price levels, continued suspension of iron ore supplies for its major supplier SMPL and non-availability of coal for its Tamnar phase-II, 600 megawatts power plants.
The company's profit before tax was adversely affected due to unfavourable market conditions and high cost of raw materials. The results was also affected by substantially higher costs on account of depreciation and interest which for the consolidated operations during Q3 December 2014, increased by Rs 528 crore compared to Q3 December 2013. As a result of Supreme Court's decision to impose additional levy retrospectively, JSPL was forced to pay lumpsum amount of Rs 3089 crore which caused it to post a loss.
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In its future outlook, company said with economy gradually picking up, JSPL is targeting a double digit growth in turnover in both standalone and consolidated level starting from Q1 June 2015. It is also expecting its raw material issues to be resolved by the end of Q4 March 2015. With all the new production facilities fully operational, JSPL is fully geared to meet any enhanced demand opportunities in the market.
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