Jindal Steel and Power (JSPL) on Friday reported a surge in consolidated net profit for the first quarter of the current fiscal to Rs 2,771 crore from just Rs 14.25 crore in the pandemic-hit first quarter of the last fiscal. During Q1FY23, the company’s total income rose to Rs 13,069 crore from Rs 10,643 crore a year ago.
The higher profits, despite a jump in expenses, including the cost of raw material, are on the back of deferment of taxes of Rs 1,276 crore and losses of Rs 1,240 crore from “exceptional items” booked in the year-ago quarter. Jindal Power is not a part of JSPL now, unlike the year-ago quarter.
In a filing to the exchanges, JSPL said its net profit from “continuing operations” before exceptional items was Rs 1,929 crore, while net profit tax from “discontinued operations” was Rs 781 crore.
Total income of the company was Rs 13,069 crore in Q1FY23 against Rs 10,643 crore in Q1FY22.
Sales, however, were largely flat at 1.74 million tonne. Expenses were higher by Rs 3,300 crore on year during the quarter to Rs 10,577 crore. Profit before tax was Rs 2,563 crore against Rs 3,410 crore in Q1FY22.
JSPL pared Rs 1,149 crore of consolidated debt, which at the end of the Q1FY23 was Rs 7,727 crore. The company aims to become net-debt free by the end of the fiscal.
In a separate filing, the company said Shallu Jindal, wife of JSPL chairman Naveen Jindal, has decided to step down as non-executive director from Friday in view of “pre-occupation and other commitments”. The board has approved the appointment of Ramkumar Ramaswamy and Sunil Kumar Agrawal as additional directors in the category of executive directors with immediate effect.