The drop in earnings was caused largely due to drop of 12-15% in the price levels and interest and depreciation burden of investments made in Angul Phase-1 Steel plant and upgradation of Raigarh steel plant, JSPL MD and CEO Ravi Uppal said.
The companys finance cost for the quarter grew almost 140% year-on-year to Rs 380 crore while total expenditure rose 19% to Rs 396.1 crore. Net sales were up 7.43% to Rs 4,949.03 crore during the second quarter, against Rs 4,606.93 crore last corresponding period.
Uppal said that the companys net sales realisations fell 12-15% year on year to around Rs 36,500 rupee per tonne in the September quarter.
JSPL also synchronised the first 600 MW power unit of Tamnar Phase-2 and it is expected to be commissioned by the end of next quarter and the new 4 mtpa pellet plant will go into production by January 2014.
The company reported a 6.6% growth in its crude steel production. The companys export sales grew by 32% this quarter. Remaining positive on the demand scenario, Jindal Steel expects exports to comprise about 20% to its total sales by the end of the current year to March.
The company also received orders from DFCC for the prestigious Delhi-Kolkata corridor and export order from Ferrotech Alloys, UK.