Jindal Steel net profit plunges; shares dip 3%

Jindal Steel & Power Ltd reported a 58% decline in its consolidated net profit for this quarter ended June 30, 2012. The consolidated net profit stood at Rs 385.48 crores against Rs 933 crore for the corresponding period of previous quarter.

Shares of the company dropped 3.42% and was seen trading at Rs 400 at 10.46 am IST.

However, the company's total Income increased from Rs. 3944 crore for the quarter ended June 30, 2011 to Rs. 4701 crore for the quarter ended June 30, 2012.

On standalone basis, Jindal Steel's net profit plunged to Rs 12.4 crore as against Rs 470 crore for the corresponding period of previous year.

The total income rose 32% to Rs 3,331 crore from Rs 2,526 crore in June 2011.

The company had made strategic business investment in Bolivia through its subsidiaries in Bolivia. In view of non fulfillment of contractual obligations by the government of Bolivia, Jindal Steel Bolivia SA forced to terminate El Mutan Joint Venture Contract with the Government of Bolivia. Therefore, the investment made by company in El Mutan Joint Venture& other opertaions have been impared. AS a matter of prudence, the company has made a proc=visions of Rs 574.2 crores in the quarter ended June 30,2012, the company said in the filing.

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Story first published: Wednesday, July 25, 2012, 10:56 [IST]

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