Jindal Stainless posts net loss of Rs 179 crore in Q4

Hit by rise in costs and interest payments, Jindal Stainless reported on Monday a standalone net loss of Rs 179.76 crore during the fourth quarter ended March 31, 2013.

The company had reported a net profit of Rs 18.55 crore during the January-March quarter of 2011-12. The company did not publish the consolidated results for the quarter.

Total expenses of the company, at Rs 3,064.50 crore, overshot its net sales at Rs 3,014.32 crore during the quarter, thereby affecting the financial performance, it said in a filing to the Bombay Stock Exchange.

Besides, its finance costs rose over 79 per cent during the quarter at Rs 269.77 crore.

For the full year ended March 31, 2013, consolidated net loss of the company has widened many folds at Rs 840.71 crore vis-a-vis a net loss of Rs 179.78 crore of FY'12.

Its expenses, at Rs 11,336.33 crore, during the year also exceeded its consolidated net sales at Rs 11,268.59 crore. Finance costs of Jindal Stainless rose by 83 per cent to Rs 1,043.44 crore, while its debt to equity ratio worsened to 8.78 in the last fiscal year.

"Results have been adversely impacted during the year 2012-13 on account of economic slowdown in Europe and most large countries in Asia, resulting into weak demand for stainless steel internationally, squeezing margins in markets," the company said.

It added that overcapacity in China and dumping of stainless steel products in India and other countries also reduced company's margins.

Due to these factors, Jindal Stainless has slowed down the ramp up its Odisha plant operations "leading to lower margins as the company could not enjoy economies of scale at that plant", the company further said.

The company Board has also approved deferment of issuing preferential shares worth Rs 100.27 crore to Jindal Stainless promoters to March 31, 2014 from the originally planned June 30, 2013, it said.

The company also announced appointment of Uday Kumar Chaturvedi as its chief executive officer with effect from May 27. Mr Chaturvedi has nearly 42 years of experience in steel industry and was associated with Tata Steel in his last assignment, the company said.

Shares of the company, on Monday, ended at Rs 52.65 apiece on the BSE, up 2.43 per cent from the previous close.