Jindal Steel and Power Limited’s Q3 profit drops due to rising costs
New Delhi:
Jindal Steel & Power Limited (JSPL) on Tuesday reported a 27.2% drop in consolidated profit at Rs 1,866.08 for the quarter ended December 2021 due to rising costs.
The company posted a consolidated profit of Rs 2,566.68 crore for the corresponding period of the previous fiscal, Jindal Steel & Power said in a BSE filing.
However, the company’s consolidated earnings for the October-December period rose to Rs 12,535.35 crore, compared with Rs 9,643.88 in the same period a year earlier.
In a statement, the company said “consolidated profit after tax (NPAT) of Rs 1,622 crore fell by 34% year-on-year (YoY) due to lower operating profit and higher tax expenses”.
While the third quarter of 2021-22 saw a strong improvement in domestic demand on a sequential basis, the quarter continued to be affected by unseasonal rains, lack of rail tracks and halted demand. stagnated amid an increase in Covid-19 cases.
Steel demand in India fell 7% year-on-year in the third quarter of the ongoing financial year.
The company sold more domestically this quarter, reflecting industry trends. Recent budgetary boost government infrastructure, increased willingness to scratch and increased private investment will continue to boost domestic steel demand. This bodes well for the company, whose two-thirds of its product portfolio caters largely to the country’s construction and infrastructure sectors.
Regarding the outlook, the company said that the domestic steel industry continues to face a strong increase in the price of coking coal.
