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Naveen Jindal’s JSPL Q2 profit melts 12%

Jindal Steel and Power Ltd on Tuesday said its consolidated profit after tax for the July-September quarter declined by 12 per cent to Rs 400 crore on higher depreciation and interest outgo.

The Naveen Jindal-led firm had reported Rs 455 crore PAT in the same quarter of the last fiscal.
'JSPL grew its consolidated second quarter turnover by 6 per cent year-on-year. EBITDA in Q2, FY15 at consolidated level also increased by 10 per cent... However, due to 53 per cent increase in burden of interest and depreciation, PAT for Q2 FY15 was lower by 12 per cent,' JSPL said in a statement.
The cash profit of the company increased however from Rs 907 crore in Q2, FY14 to Rs 1,308 crore in Q2, FY15 — a net increase of 44 per cent, it added.

JSPL's turnover rose to Rs 5,143 crore during the quarter from Rs 4,852 crore a year ago despite 'several unfavourable' developments such as de-allocation of coal blocks, reduction in steel demand due to monsoon and difficulty in importing raw materials.

Turnover from the steel business dipped by 9 per cent, but, power business reported a 39 per cent growth and its Oman steel unit clocked a 32 per cent increase. JSPL's coking coal mine in Australia, however, continued to make losses due to operational reasons as well as low price levels.

Depreciation cost of the company during July-September quarter went up by 50 per cent to Rs 650 crore, while interest outgo increased by 57 per cent to Rs 599 crore from the year ago period.
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