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Jindal Steel and Power Limited (JSPL) steel sales have increased by 16 per cent in first quarter (Q1) of 2015-16, as compared to the last quarter of the year 2014-15.
The company's consolidated net profits, however, decreased by 39 percent to Rs355 crore, as compared to the last quarter of the year 2014-15. The year-on-year (y-o-y) quarterly decrease in consolidated net profits was of 11.5per cent.
"Consolidated PBT and PAT continues to be impacted due to higher depreciation (Rs 747 crore) and Finance cost of (Rs 852 crore)," JSPL said in its press release.
JSPL sold 1.1 million tonne (MT) of steel in first quarter - showing a 39 percent y-o-y increase. In spite of higher sales volumes, standalone turnover of JSPL declined by 6 per cent y-o-y to Rs 3,134 Crore due to decline in Net Sales Realization (NSR). "NSR continues to be under pressure due to unabated import of steel from China, Korea and other countries," JSPL noted.
Similarly, JSPL standalone earnings before interest, taxes, depreciation and amortization (EBITDA) on a y-o-y basis decreased from Rs 1,192 crore to Rs 710 crore due to higher raw material cost and declining NSR.
"It is imperative that government supports Indian steel manufacturers byinitiating anti-dumping duties on these countries to make a level playing field- the sooner the better. Currently, the domestic industry is also grappling with far higher input, logistic and steep interest costs," said JSPL in its outlook.
The company with its newly expanded capacity is targeting to increase its production of steel substantially during 2015-16. "Subject to favourable economic conditions, JSPL is targeting to produce over 5 MT steel during 2015-16, which would be about 50 per cent higher than 2014-15," JSPL said.
