JSPL Profit Dipped by One-Third in Q3 FY22

SEATTLE (Scrap Monster): Jindal Steel & Power announced financial results for the quarter ended December 31^st, 2021.

The company cited higher operating expenses for the 27.2% drop in consolidated profit to INR 1,866.08 crore during the quarter. This compares with INR 2,566.68 crore in the corresponding quarter of the previous fiscal. On the contrary, the consolidated income during the quarter surged higher from INR 9,643.88 crore to INR 12,535.35 crore over the previous year.

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The press release by the company indicates 34% decline year-on-year in consolidated profit after tax to INR 1,622 crore, primarily on account of lower operating profit and higher tax expenses.

The domestic steel sales surged higher significantly by 19% over the sequential quarter, in line with the industry trend. However, over the year, the sales registered 6% decline. It must be noted that steel demand in the country had reported 7% year-on-year decline during Q3 FY22.

Jindal Steel & Power foresees notable boost in domestic steel demand, driven by infrastructure push in the budget, increased rake availability and rising private capex. However, the domestic steel industry continues to grapple with the sharp rise in coking coal prices, it said.