JSPL consolidated Q4 net up 4 per cent to Rs 1,001cr on higher sales

Jindal Steel & Power (JSPL) on Friday clocked a four per cent rise in consolidated net profit at Rs 1,001.70 crore in the final quarter of last fiscal on improved sales in both of its power and steel businesses.

The Naveen Jindal-led firm also announced its capital expenditure plan of around Rs 13,000 crore for the current fiscal, of which Rs 7,500 crore will be used for expansions in the power business and the remaining in the steel business.

Announcing the company's results, JSPL Group Chief Financial Officer Sushil Maroo said much of the net profit came from the steel business (Rs 506.16 crore), though power sector also contributed to the highest-ever bottomline for the company in a quarter.
Profit after tax during the quarter from power business was at Rs 495.54 crore.

Pellets' sales during the quarter increased by a whopping 1,792 per cent to 2.2 lakh tonnes against just 11,893 tonnes in the year-ago period. Sale of steel rose by six per cent to 5.3 lakh tonnes against 5.03 lakh tonnes.

Power sales went up by 25 per cent to 299 kWh during the quarter from 240 kWh a year-ago.

On standalone basis, JSPL's net profit went up by 18 per cent to Rs 648.33 crore during the quarter on a turnover of Rs 2,742.19 crore.

Year-on-year, JSPL's consolidated net profit rose by five per cent to Rs 3,804 crore in FY'11 against Rs 3,634.56 crore in the previous fiscal. Standalone net also recorded 39 per cent growth during the year to Rs 2,064 crore compared to Rs 1,479.68 crore.

Declining to give any projection for company's topline on a consolidated basis for the current fiscal, Maroo said JSPL expects to have a good run with the commissioning of entire 1,350 MW power plant in Jharkhand, 1.5 million tonne pellet plant in Orissa and starting of iron ore sales from Bolivia's El Mutun mines in the current quarter.

However, he said steel price may remain stable in the current fiscal, but further firming up of coking coal costs could escalate the prices going forward. In the power sector, prices might come down a bit in the face of stiff competition.

JSPL as Group, which consists of JSPL and Jindal Power, would invest around Rs 13,000 crore in 2011-12. Though there would be no equity dilution in JSPL, the listed entity; fund raising by way of listing of Jindal Power can happen during the year, but no time-frame has been set for that.

Jindal Power is setting up 2400 MW thermal power plant at Tamnar in Jharkhnad. It has also signed an MoU with the Jharkhand government to set up a 2,640 MW thermal power plant.

In the hydro sector, the company has signed agreements for 6,100 MW projects in Arunachal Pradesh in a joint venture.