Jindal Net up 23 pc

Jindal Stainless Limited has recorded a 23 percent growth in net profit at Rs. 20.48 crore during the second quarter of this fiscal against Rs. 16.64 crore during the previous quarter. The company's turnover during the quarter ended September 30, 2000 stood at Rs. 353.04 crore. Upto 42 percent over income Andersen reported to help Jindal steel cut costs by Rs. 12 Cr.

Andersen consulting has undertaken a study for the Navin Jindal - promoted Jindal Steel & Power Ld. whereby the steel company can cut costs by Rs. 10 crore to Rs. 12 crore this fiscal.

The implementation of the Andersen report will help Jindal Steel & Power achieve a net profit of Rs. 1000 crore during this financial year, a company spokesperson said.

Jindal Steel hopes to achieve a turnover of Rs. 500 crore in this financial year. For the nine months period ended March 31.2000, the company had made a net profit of Rs. 66 crore and an annualised EPS of Rs. 62 per share.

The consulting firm has suggested many ways to cost such a different product mix. Setting up of a cooling tower, and ways to cut the cost of production of steel and sponger iron. "The recommendations will help the company cut cost by Rs. 10 crore to Rs. 12 crore this fiscal. "the official said.

Meanwhile, the company has earned the distinction of becoming the world's largest coal-based sponge iron manufacturer in the sponge iron manufacture in the world with the commissioning of the sixth rotary kiln at the Rajgarh facility.

This kiln would produce an additional 120,000 tonnes per annum of sponge iron. Taking its total production capacity to 620,000 tonnes per annum. The sixth kiln commenced operation on September 28, It was set up st the cost of Rs. 25 crore, which was met through internal accruals. The company in captivity using only 30 per cent of the sponge iron it produces. The remaining is being sold in the market.