Jindal Steel and Power (JSPL) on Wednesday posted 6.81 per cent growth in consolidated net profit at Rs 996.68 crore for the quarter ended December 31, as rupee depreciation and high raw material costs hit the company's bottomline.
It had reported a net profit of Rs 935.43 crore during the same quarter in 2010-11.
Net sales of the company, however, rose 37.45 per cent to Rs 4,354.51 crore during October-December quarter vis-à-vis Rs 3,168.15 crore in Q3 last fiscal, JSPL said in a filing to the BSE.
"We were impacted by the continuous fall in rupee and higher raw material prices during the quarter... Taken together, it will be about Rs 150 crore," JSPL Chief Financial Officer Sushil Maroo told PTI.
The consolidated net profit of JSPL includes an outgo of Rs 22.23 crore towards minority interest held in some undisclosed firms.
The company's raw material costs rose about 126 per cent during the quarter as it had to shell out Rs 1,567.48 crore as compared to Rs 693.66 crore of Q3 of FY'11.
However, the company was helped by higher income from its power business and an one time of gain of Rs 25.94 crore. The power business reported a growth of about 9 per cent during the quarter, with a revenue of Rs 1,155.22 crore.
Expressing hope that things will improve in next few months, Maroo said the company has kept a capex of Rs 6,000 crore for expansion in the next fiscal.
"We have tied up all the debt but we will meet the expenditure from our internal accruals which are in good shape. We will not use all the debt," he said.
However, on a standalone basis, company's profit went down by 8.14 per cent at Rs 461.07 crore during the quarter as compared to Rs 501.93 crore. The standalone net sales, in the October-December period, registered a growth of little over 37 per cent at Rs 3,295.14 crore.
According to a company statement, JSPL's steel production rose by 30 per cent during the quarter, while the power production also went up by about 29 per cent.
The Naveen Jindal-led company has also commissioned 3 units of 135 MW each at its different power projects in Chhattisgarh and Odisha, taking its total production capacity to 1,187 MW. The company expects to commission another 440 MW capacity by March.
During the quarter, Jindal Power, the wholly owned power subsidiary of JSPL, reported a net profit of Rs 481.32 crore and turnover of Rs 881.40 crore.
Shares of the company on Wednesday closed at Rs 509.95 apiece on the BSE, down 0.25 per cent.
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