Press Release

JVSL continues to post profits – Achieves Net Profit of Rs. 22.92 Crores for the 1st Quarter 2003-04 Jindal Vijayanagar Steel Ltd. (JVSL) has shown significant improvement in the performance during the 1st Quarter 2003-04 by posting growth in volume of production and sales by around 29% and 19% respectively over the corresponding quarter in the previous financial year 2002-03.  The increase of 32% in net sales realisations (NSR) coupled with increase in sales volume pushed up the net sales value by 68% compared to the corresponding quarter in the previous financial year. During the 1st Quarter of 2003-04, the production was 3.84 Lacs MT and sales 3.44 Lacs MT. The earnings before interest, depreciation and tax (EBIDTA) reported for the 1st Quarter ended 30th June 2003 is Rs. 226.97 Crores on a total turnover of Rs. 764.95 Crores (net of excise duty Rs. 697.96 Crores).  The operating margin achieved during the quarter at around 32% of the net sales is the highest ever till date.  The company has made a cash profit of Rs. 106.17 Crores during the current quarter.  After providing for interest, depreciation and amortisation and considering exceptional item towards the benefit to the company on account of full and final settlement of outstanding dues to a foreign lender, the net profit before tax for the quarter is Rs. 28.71 Crores.  The net profit after tax is Rs. 22.92 Crores, after providing for deferred tax liability of Rs. 5.79 Crores.  The Company achieved highest ever Pellet Production of 8.02 Lakhs MT for the 1st Quarter 2003-04 which is 107% of the installed capacity and all other units achieved production close to 100% capacity during the quarter. The company has effected repayment / pre-payment of loans to the extent of Rs. 71 Crores during the 1st Quarter 2003-04, apart from clearing all interest dues upto 30th June, 2003 to the lenders who are constituents of Corporate Debt Restructuring (CDR). The upward movement in prices and the current buoyant market conditions in steel industry from the beginning of the 2nd quarter 2003-04 are expected to continue in the later part of the year as well which would help further improve the overall performance in the industry.  The company is confident of continuing the profitability trend and significant improvement in the operational performance in the current financial year with its constant efforts for further reduction in the cost of production.

UNAUDITED FINANCIAL RESULTS FOR  THE QUARTER ENDED 30.06.2003

(Rs.in crores)

QUARTER ENDED PREVIOUS  YEAR   ENDED (Audited) SR .NO PARTICULARS 30.06.2003 30.06.2002 31.03.2003 1 Gross Sales / Income from Operations  a)Domestic Sales b)Export Sales Total Sales 697.62 67.33 764.95 462.51 13.25 475.76 2417.39 368.65 2786.04 2 Less :Excise Duty 66.99 62.07 281.28 3 Net Sales/Income from Operations (1-2) 697.96 413.69 2504.76 4 Other Income 0.46 0.43 7.52 5 Total Expenditure 471.45 330.75 1796.99   a) (Increase) / Decrease in stock in Trade (57.24) (5.17) (12.17)   b) Consumption of Raw Materials 319.39 232.88 1095.92   c) Power and Fuel 113.07 56.95 397.96   d) Staff Cost 9.92 6.90 34.96   e) Other Expenditure 86.31 39.19 280.32 6 Profit  / (Loss ) before Interest, Depreciation, Exceptional item and Taxation (3+4-5) 226.97 83.37 715.29 7 Interest 120.80 111.71 563.45 8 Depreciation 77.65 51.78 280.59 9 Miscellaneous Expenditure Written Off 15.99 15.78 64.51 10 Profit / (Loss ) before Exceptional item & Taxation (6-7-8-9) 12.53 (95.90) (193.26) 11 Exceptional Item 16.18 - (209.57) 12 Profit / (Loss) before Taxation 28.71 (95.90) (402.83) 13 Provision for taxation             a) Current tax - - -     b) Deferred Tax asset /(Liability) (5.79) 17.50 292.16 14 Net Profit / (Loss ) (12+13) 22.92 (78.40) (110.67) 15 Paid up Equity Share Capital ( face value of Rs. 10 per share) 1352.03 1352.00 1352.03 16 Reserve excluding revaluation reserves(As per Balance Sheet) - - - 17 Basic & diluted EPS for the period , for the year to date & for the previous year - Rs. 0.18 (0.61) (0.86)      (------not annualised------)   18 Aggregate of Non promoter shareholding       -No. of shares 464652983 466301766 464002812 -Percentage of shareholdings 35.99 36.12 35.94               Notes :     1. The current quarter includes figures for Pellet & Corex-II Plants, which were under trial run in the corresponding quarter of the previous year, hence the figures for the current quarter are not comparable with those of corresponding quarter of the previous year   2. As the Company is engaged in only one segment viz. “iron and steel products”, there are no reportable segments as per Accounting Standard (AS 17).   3. Revised Restructuring Package (RRP): (a) The interest has been provided as per the terms of approved RRP for those lenders who are signatories to the CDR system.  The conversion of debt of Rs. 456.78 crores into Equity shares of Rs. 10 each will be done on completion of procedural formalities (b) The statutory, legal and regulatory formalities including approval of the Hon’ble High Court of Karnataka are being complied with for cancellation of part of existing equity capital to the extent of Rs. 516.40 crores and for issue of 0.01% cumulative redeemable preference shares in lieu thereof.   4. Paid-up equity share capital as on 30th June, 2003 includes Rs. 61.03 crores being the amount originally paid up on the shares forfeited   5. Information on investor complaints  (Numbers): Pending at beginning of   the   quarter - 68, Received during the quarter - 1292; Resolved/replied during the quarter  - 1310; Unresolved at the end of the quarter – 50 (pending for less than six days).   6. Exceptional item represents for the current quarter, the benefit on account of full and final settlement of outstanding dues to a foreign lender (for the previous year ended 31.03.2003, the additional interest expenses on account of revocation of earlier restructuring package).   7. Previous period figures have been regrouped/rearranged wherever necessary.   8. The above results reviewed by the Audit Committee, have been taken on record at the meeting of the Board of Directors held on 25th July, 2003 and the results of the current quarter have been subjected to Limited Review by the Statutory Auditors Place :    Mumbai J.K.TANDON Date :    25th  July, 2003. Jt. Managing Director & CEO