Jindal Steel and Power Q2 net profit down 49.62 per cent

Jindal Steel and Power (JSPL) has reported a 49.62 per cent drop in consolidated net profit at Rs 452.07 crore for the second quarter ended September 30, largely due to subdued sales and rise in finance costs.

The Naveen Jindal-led company had reported net profit of Rs 897.28 crore in the July-September quarter of the previous financial year.

Net sales of the company were up 7.43 per cent to Rs 4,949.03 crore during the second quarter of 2013-14 vis-a-vis Rs 4,606.93 crore in the year-ago period.

Total expenditure of the company stood at Rs 3,960.84 crore and amounted to 80 per cent of its net sales. Besides, its finance costs rose by over 139 per cent to Rs 380.47 crore during the quarter from Rs 158.83 crore in the year-ago period.

The company's steel business recorded a growth of 8.89 per cent in revenues to Rs 4,135.26 crore. However, revenues from the power business was down 0.58 per cent to Rs 1,080.46 crore in the quarter.

JSPL's scrip closed at Rs 239.20 on the Bombay Stock Exchange, down 0.58 per cent.