New Delhi: Jindal Steel and Power Monday said it will commission 3 million tonnes per annum capacity plant in Orissa by year-end, while announcing a 54.14 percent rise in its net profit for the October-December quarter.
"We will be starting the Phase-I, which is 3 MTPA steel plant at Angul (Orissa) by the end of the year," JSPL Joint Managing Director Anand Goel told reporters here.
He added the company has replied to the show cause notice of Environment Ministry and construction work has not been stopped there, as the government had issued a show cause notice threatening to revoke its clearance for flouting forest norms at the site in November.
"There is no stoppage in Angul... We have replied to the queries of the ministry (of Environment)."
The company plans to invest Rs 40,000 crore in Orissa to produce 12.5 MTPA steel in phases and generate 2,500 MW power over the next decade.
Talking about results for the quarter ended December 31, 2010 JSPL's Group CFO Sushil Maroo said, "We have posted highest-ever profit at Rs 501.93 crore for the quarter, a jump of 54 percent against the corresponding quarter of 2009-10."
The Navin Jindal-led firm had reported Rs 325.62 crore net profit in the October-December quarter last fiscal.
Maroo added that "higher sales realisation and increasing efficiency were the main reasons in increasing the profit margin".
During the third quarter of the current fiscal, JSPL's total income stood at Rs 2,410.23 crore vis-a-vis 1,780.44 crore in the same quarter last fiscal.
Besides this, the company registered a 27 per cent growth in its steel sales, while production of the metal alloy was up by 6 percent during the quarter. Its sales from power business reported a growth of 7 percent.
He said that during the quarter, JSPL's plant in Oman (Jindal Shadeed) started commercial production three months ahead of schedule, while adding that the company plans to start shipping iron ore from Bolivia in the ongoing quarter.
"We are not putting any numbers to it or for next financial year. Our effort is to first ship the iron ore from there," he said when asked about the quantity to be shipped from Bolivia.
He added that "the company is not planning to use the iron ore for its captive consumption and it will be sold in neighbouring areas of Bolivia."
Asked about the increasing prices of raw materials like iron ore and coking coal, Maroo said, "We are partially influenced from the price rise, but not to a big extent, as we import only 1 million tonnes of coking coal."
Talking about the steel price outlook for the coming months, Maroo said that "it should stabilise now, as the coking coal prices are showing stabilising trend and floods in Australia are receding".
He added the company is not looking to venture into the production of auto-grade steel and "is not thinking of any technical tie up so far for that".
JSPL plans to have 15 MTPA steel producing capacity by 2020, while setting up new capacities in Orissa, Jharkhand and Chhattisgarh, he said.
Talking about the proposed initial public offering of its subsidiary, Jindal Power, Maroo said that it will happen in next 3-4 months. He, however, declined to give a specific time line for the IPO.
During the October-December quarter, JSPL commissioned 270 MW power capacity and plans to add over 1,000 MW more by the March 2012, he said.
Jindal Power's managing director RS Sharma added that company plans to have 15,000 MW power production capacity by 2015.
Scrips of the company closed today at Rs 699.25 apiece on the Bombay Stock Exchange, up 0.04 per cent from the previous close.