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Business News/ Market / Stock-market-news/  JSPL shares hit over six-year low on disappointing Q4 results
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JSPL shares hit over six-year low on disappointing Q4 results

The stock fell as much as 8.66% and touched a low of Rs118.1 a share, a level last seen on 2 December 2008

This was the fourth consecutive session where JSPL stock fell. Year-to-date, it fell 21.9%. Photo: Bloomberg Premium
This was the fourth consecutive session where JSPL stock fell. Year-to-date, it fell 21.9%. Photo: Bloomberg

Mumbai: Shares of Jindal Steel and Power Ltd (JSPL) on Thursday hit a six-year low after the company reported consolidated net loss for the second consecutive quarter and annual loss for the first time in at least a decade.

The stock fell as much as 8.66% and touched a low of 118.1 a share, a level last seen on 2 December 2008. This was the fourth consecutive session where JSPL stock fell. Year-to-date, it fell 21.9%.

The company reported a net loss of 519.3 crore as compared with a net profit of 402.5 crore a year ago. The company has posted a net loss of 1,675.11 crore in the December quarter.

In 2014-15, the company posted a net loss of 1,278.12 crore as compared with a net profit of 1,910.36 crore a year ago.

“Sharp increase in depreciation and financing costs, losses from WCL Australia coking coal mines and forex losses caused net loss at consolidated level," according to a report by brokerage India Nivesh.

The earnings before interest, taxes, depreciation and amortization, or Ebitda margin, fell 937 basis points to 17.4% due to lower margin from steel business and forex losses, while steel and iron business margin contracted by 1,155 basis points (bps) year-on-year due to lower realisation and higher raw material cost, while the power business margin expanded by 382 bps year-on-year, the report said. One bps is a hundredth of a percentage point.

Jindal Steel and Power closed at 118.55 on BSE, down 8.31% from its previous close, while India’s benchmark index Sensex fell 0.21% to 27,506.71 points.

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Published: 28 May 2015, 11:45 AM IST
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