Jindal Steel Jan-Mar consol loss seen Rs 4.4 billion

NEW DELHI: Jindal Steel and Power Ltd is seen reporting a consolidated net loss of 4.43 bn rupees for the three months ended March, according to an average of estimates given by five brokerage houses. Jindal Steel has reported losses for the last eight consecutive quarters and is expected to remain in the red during the quarter ended March as well, as interest cost would continue to eat into the company's earnings. In the year-ago period, Jindal Steel posted a net loss of 3.71 bln rupees. In Oct-Dec, net loss was 4.07 bln rupees. The company's consolidated net sales are seen at 61.16 bln rupees during the quarter. In the year-ago period they were 49.48 bln rupees, while in Oct-Dec, they were 54.08 bln rupees. Jindal Steel will detail its earnings for the March quarter on Tuesday. The company is likely to report Jan-Mar earnings based on new accounting standards, Ind AS, and the numbers may not be strictly comparable with analyst estimates and last year's financial results. Analysts' estimates for the company's Jan-Mar consolidated net loss varied widely between 3.34 bln rupees and 6.27 bln rupees, while those for the topline were between 54.01 bln rupees and 66.20 bln rupees. The outgo on interest expense, or finance cost, is likely to remain high owing to the massive debt on Jindal Steel's books. The company paid 8.35 bln rupees as finance cost in Oct-Dec and 8.58 bln rupees in Jan-Mar last year.