'Worst' quarter for JSL, posts 400 cr loss | business | Hindustan Times
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'Worst' quarter for JSL, posts 400 cr loss

business Updated: Jan 31, 2009 19:46 IST

PTI
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Faced with demand slump and fall in prices of its products, country's largest stainless steel producer JSL Ltd on Saturday posted a loss of Rs 378.38 crore for the third quarter of the fiscal.

The Ratan Jindal-led firm had posted a profit of Rs 50.60 crore in the year-ago period.

"Worst happened to us in this quarter. A combination of factors like fall in raw material cost, rise in input pressure, buyers withholding their orders, temporary closure of our plants, impacted us during the quarter," JSL Ltd Director (Finance) Arvind Parakh said.

Operational disruptions at JSL's units which led to mounting of input cost pressure as the company had to sit over costly raw material during the quarter coupled with movement of the Indian currency against the greenback hit the company's margins hard during the quarter, he added.

"At Hissar plant, the company had undertaken capacity expansion at one of its mills which resulted in major plant shutdown during the quarter," he said, adding the closure resulted in "loss of turnover" to the tune of Rs 462 crore.

Besides slackening demand of the alloy and its high input costs, the company blamed cheaper imports of stainless steel taking a toll on its bottom line.

Depreciation of the Indian currency against the US dollar also resulted in the loss of Rs 144 crore.

"The depreciation of rupee from a level of Rs 40.02 to Rs 48.68 at the close of quarter had its impact on our operating results," Parakh said.

The O P Jindal Group Company saw its total income going down by Rs 517 crore to Rs 844.03 crore than the year-ago period. The total income stood at Rs 1,364.80 crore in the same period of the last fiscal.