Steel maker JSPL has cut over 750 jobs as the company reported Rs 1,675 crore consolidated loss for the third quarter...
Steel maker JSPL has cut over 750 jobs as the company reported Rs 1,675 crore consolidated loss for the third quarter ended December, 2014 mainly due to payment of the Supreme Court imposed penalty on coal block allocation scam.
“As a result of Supreme Court’s decision to impose additional levy retrospectively, JSPL was forced to pay a lumpsum amount of Rs 3,089 crore which caused it posting a loss of Rs 670 crore and Rs 1,675 crore for JSPL standalone and consolidated respectively,” the company said in a release.
The company, which has interests in both steel and power, had reported Rs 559 crore profit after tax in the same period last fiscal.
The turnover of the company also fell by 2 per cent to Rs 5,045 crore in the quarter under review from Rs 5,142 crore in the year-ago period.
“The company during Q3 undertook multiple steps to reduce its costs, including reduction of manpower by over 5 per cent,” it said in the statement.
Sources said the company has around 15,000 employees.
The results were also affected by substantially higher costs on account of depreciation and interest which for the consolidated operations during this quarter increased compared to the same quarter in the previous year.
Interest costs went up to Rs 702 crore from Rs 403 crore a year earlier. Depreciation and amortisation costs went up to Rs 715 crore from Rs 460 crore a year earlier.