Jisco hires consultants to script JVSL merger

 While the evaluation of the companies will be done by ICICI Securities, RSM & Co will table the proposal for the integration of the two businesses to form a single steel conglomerate.

 The integration will include the consolidation of the financial assets, as well as operational synergies, company sources said. The JVSL board will meet tomorrow to approve the in-principle appointment of the consultants.

 The company has recorded a 197 per cent jump in its net profit for the quarter ended 30 September 2003 at Rs 45.46 crore, against Rs 15.26 crore in the corresponding period of the previous year.

 Net sales for the quarter are at Rs 506.75 crore, against Rs 343.82, a jump of 47.39 per cent. About 72 per cent of the sales turnover was constituted by exports. Interest costs also stood reduced at Rs 19.85 crore, a decline of about 30.03 per cent from Rs 28.48 crore in the quarter ended 30 Septmeber 2002.

 The company registered a turnover of Rs 958.08 crore for the half year ended 30th September, 2003 compared with Rs 613.40 crore in the corresponding half last year, an increase of 57 per cent.

 In the GP/GC segment, the sales in the first half of 2003-04 were at 2.57 lakh million tonne compared with 2.22 lakh million tonne in the corresponding period of 2002-03, recording a growth of 16 per cent.

 Debt reduction of Rs140 crore in the first half has resulted into a 47 per cent reduction in the company