JSPL’s Q2 profits drops on higher raw material costs
Jindal Steel & Power Ltd. (JSPL), India's biggest alloy producer reported an unexpected decline in its Q2 profits, due to higher raw material costs and a one-time expense.
Its net income fell to INR8.75 billion in the three months ended on September 30th from INR8.82 billion rupees in a year earlier.
It’s known that the coking coal prices surged by 40% to US$315/ton in the last quarter, boosted by the heavy rain in Australian Queensland state. However, the steel prices remained flat in the given period due to weak demand.
The company indicated that its total expenses, including raw material costs for the quarter jumped by 65% to INR30.5 billion.