Jindal Steel posts Q3 consolidated net loss of Rs 1,675 crore

Jindal Steel and Power (JSPL) reported a net loss for the third quarter of the current 2014-15 financial year, hurt by a charge related to the levy it paid the government for mining coal from coal blocks that were cancelled by a court order in September.

Consolidated net loss for Q3 stood at Rs 1,675 crore ($271.89 million), compared with a profit of Rs 559 crore in the year-ago period, JSPL said.

The company, which was the worst hit by an order by the Supreme Court in 2014 that cancelled more than 200 coal block licences, said late on Tuesday that it had cut over 5 per cent of its 15,000-strong workforce during the October-December quarter to trim costs.

Earnings took a beating after it incurred exceptional charges of Rs 1,855 crore, mainly due to a levy it deposited after nine of its coalfields were taken back by the government.

JSPL was also hurt by higher raw material costs as it had to meet a large part of its iron ore and coal requirements from auction sales or imports, the company said.

However, with project expansions complete and raw material issues expected to be resolved soon, the company said it expected to post double-digit revenue growth by the next quarter.

Jindal Steel shares, which have fallen over 40 per cent in the past six months, were trading 3.3 per cent higher in early trade on Wednesday.

(Reuters)