Jindal Steel and Power reports Rs 87 crore net loss in June quarter

Globally, the June quarter saw a contrasting phenomenon in steel, marked by the gradual decline in steel prices against rising iron ore prices.

Published: 14th August 2019 04:46 PM  |   Last Updated: 14th August 2019 04:47 PM   |  A+A-

Jindal Steel and Power Ltd. (Photo | Bloomberg)

By PTI

NEW DELHI: Jindal Steel and Power Ltd (JSPL) on Wednesday reported a consolidated net loss of Rs 87 crore during the first quarter ended June 30, mainly due to higher expenses.

The company had posted Rs 110-cr consolidated net profit during the same quarter a year-ago, JSPL said in a BSE filing.

During April-June 2019, the company said its total income was at Rs 9,946 crore as against Rs 9,665 crore in the same period a year ago.

The expenses during the period under review were at Rs 9,935 crore as compared to Rs 9,400 crore in April-June 2018.

In a separate statement, JSPL said the company produced 1.85 million tonnes (MT) of crude steel, up 12 per cent from 1.65 million tonnes in the first quarter of previous fiscal.

The company sold 1.84 MT of crude steel as compared to 1.61 MT in the year-ago period, registering a rise of 14 per cent.

In Oman, Jindal Shadeed reported production of 0.39 million tonnes of crude steel as against 0.43 million tonnes in the same quarter a year ago.

In Mozambique, mine at Chirodzi produced 614-kilo tonne run of mine, up 126 per cent year-on-year. In Australia, both the Wongawilli and Russell Vale mines remained under maintenance.

Globally, the June quarter saw a contrasting phenomenon in steel, marked by the gradual decline in steel prices against rising iron ore prices.

Even in India, the downtrend in steel prices continued across various products for most steel manufacturers, both in long and flat categories.

The reducing liquidity in the markets further exacerbated the steel demand during the quarter, the statement said.

JSPL further said, the company has entered into a "share purchase agreement (SPA) to divest its stake in the Botswana coal mine project in South Africa for a consideration of around USD 150 million".

The proceeds from this divestment will be used to pare down debt, it said without divulging further details. As on June 30, 2019, JSPL's total debt stood around Rs 39,000 crore.

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