JSPL Q3 net profit down 13%

Naveen Jindal-promotedJSPL has reported a 13 per cent decline in consolidated net profit at Rs 867.27 crore for the October-December quarter of 2012-13 as against little over Rs 996 crore same period last financial year which the company has attributed to higher interest burden and declining revenues from its power business.

While the steel business has been performing relatively well, JSPL said expressed concern on the dwindling revenues from the power segment. JSPL CEO Ravi Uppal reasoned that his company said was unable to dispatch more than 81 per cent of the total power it produced owing to serious transmission problems impacting the overall performance of the group. The transmission issues led to JSPL's profits dipping by Rs 230 crore which entailed Rs 1 fall in per unit of merchant power tariffs. During the third quarter of 2011-12 the group had a profit of Rs 481 crore from the power business as against Rs 255 crore profit in this quarter implying a dip in profits of nearly Rs 230 crore.

To offset some risks in power segment, the company is aiming to sign long-term power purchase agreements and has bid for signing PPAs with discoms of Rajasthan and Uttar Pradesh, he added.

JSPL's consolidated net sales at Rs 4,683.91 crore up by 7.55 per cent during the quarter was primarily propelled by over 17 per cent rise in the revenues from steel operations.

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