Higher sales volumes of iron ore pellets and steel helped Jindal Steel and Power (JSPL) post a 37 per cent growth in sales with a 7 per cent increase in net profit on a consolidated basis.

However, power output stagnated and realisations on both power and steel remained weak.

In the power segment, the company's performance left a lot to be desired.

Even in the power segment, which took a hit from flat merchant tariffs, it was captive operations that resulted in a 9 per cent growth in sales.

Overall, the company reported a 4 per cent drop in operating profits from the power segment to Rs 720 crore.

Delays in commissioning power capacity, a malaise that has hurt all power generators, has hurt the stock price over the last one year.

The company's consolidated sales grew mainly due to higher sales volumes of iron ore pellets and steel. The company sold 18 per cent more steel during the quarter, as it converted more of its pig iron into the more value-added steel.

The company also sold more than double the amount of iron ore pellets compared to the same quarter a year ago — the increased output helped counter the effect of relatively weak steel realisations and helped steel segment revenues grow by 46 per cent.

However, profits from the steel segment grew by a more sedate 33 per cent as raw material costs more than doubled on account of higher metallurgical coal prices.

adarsh@thehindu.co.in

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