JSW Ispat posts net loss of Rs 141.29 cr in Jan-Mar quarter
JSW Ispat Steel today reported a standalone net loss of Rs 141.29 crore for the quarter ended March 31, 2012, largely due to technical difficulties in its operations.
By PTI | Updated:
MUMBAI: JSW Ispat Steel today reported a standalone net loss of Rs 141.29 crore for the quarter ended March 31, 2012, largely due to technical difficulties in its operations.
The JSW group firm had reported a net profit of Rs 70.18 crore during the corresponding quarter of 2010-2011 fiscal.
Net sales of the company was up 4.66 per cent to Rs Rs 2,721.01 crore during the quarter under review vis-a-vis Rs 2,599.96 crore of the January-March period of 2011, it said in a filing to the BSE.
During the quarter, company's total expenses rose by 11.25 per cent to Rs 2,744.70 crore, while its interest outgo rose 18 per cent to Rs 268 crore.
"Net loss during the quarter has been largely due to technical difficulties in blast furnace operations and liability on account of custom duty and interest on import of power plant by a wholly-owned subsidiary," the company said.
It added that it has taken various measures to improve the operating results and "is confident that the measures would result in sustainable cash flows and improvement in net worth".
The steel maker follows July-June period as its financial year.
For the nine months period ended March, 2012, the company's net loss has widened to Rs 795.16 crore from Rs 670.75 crore of the same period a year ago.
Its net sales went up about 39 per cent to Rs 7,868.75 crore between July, 2011 and March, 2012.
Stating that auditors have drawn attention on net deferred tax asset of Rs 1,308.76 crore up to March, 2011, the company said that it has not recognised it with effect from April, 2011 "as a matter of prudence".
The company, which came out of corporate debt restructuring programme from September 30, 2011, said it is confident of having sufficient taxable income in the future to claim the deferred tax credit due to improvements in capacity and operating-efficiency.
JSW Ispat's auditors, S R Batliboi & Co, pointed out in their report that company's loss would have increased by Rs 1,308.76 crore upto March, 2011, had it been recognised by the company. The auditors, however, said that "we are unable to express an opinion" on the matter.
The JSW group firm had reported a net profit of Rs 70.18 crore during the corresponding quarter of 2010-2011 fiscal.
Net sales of the company was up 4.66 per cent to Rs Rs 2,721.01 crore during the quarter under review vis-a-vis Rs 2,599.96 crore of the January-March period of 2011, it said in a filing to the BSE.
During the quarter, company's total expenses rose by 11.25 per cent to Rs 2,744.70 crore, while its interest outgo rose 18 per cent to Rs 268 crore.
"Net loss during the quarter has been largely due to technical difficulties in blast furnace operations and liability on account of custom duty and interest on import of power plant by a wholly-owned subsidiary," the company said.
It added that it has taken various measures to improve the operating results and "is confident that the measures would result in sustainable cash flows and improvement in net worth".
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The steel maker follows July-June period as its financial year.
For the nine months period ended March, 2012, the company's net loss has widened to Rs 795.16 crore from Rs 670.75 crore of the same period a year ago.
Its net sales went up about 39 per cent to Rs 7,868.75 crore between July, 2011 and March, 2012.
Stating that auditors have drawn attention on net deferred tax asset of Rs 1,308.76 crore up to March, 2011, the company said that it has not recognised it with effect from April, 2011 "as a matter of prudence".
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The company, which came out of corporate debt restructuring programme from September 30, 2011, said it is confident of having sufficient taxable income in the future to claim the deferred tax credit due to improvements in capacity and operating-efficiency.
JSW Ispat's auditors, S R Batliboi & Co, pointed out in their report that company's loss would have increased by Rs 1,308.76 crore upto March, 2011, had it been recognised by the company. The auditors, however, said that "we are unable to express an opinion" on the matter.
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