Jindal Iron & Steel Company came under selling pressure on Monday on profit taking and clocked heavy volumes .
The scrip of the flat steel maker was trading higher by 3.4% to Rs 67.60 on BSE in afternoon trades. It came off the day's high of Rs 71.10 (at which level it was higher than Friday's close by 8.8%). The scrip clocked high volumes of 16.70 lakh shares on BSE so far.
The market was expecting strong results from Jisco as was reflected by the surge on the counter in the run up to the results. The scrip rose 17.6% from Rs 55.50 on 15 January 2003 to Rs 65.30 on 17 January 2003. From Rs 33.50 on 12 November 2002, the scrip rose 94.9% to Rs 65.30 ahead of the results.
Jisco's results are in line with expectations. For Q3 ended 31 December 2002, Jisco reported a net profit of Rs 29.86 crore compared to a net loss of Rs 15.34 crore in the corresponding period last fiscal. Market expectations were that the company would post a net profit of close to Rs 30 crore. Total income (net of excise) increased 59.7% from Rs 259.20 crore (Rs 2.50 billion) in DQ-01 to Rs 413.98 crore (Rs 4.13 billion) in DQ-02.
Jisco is engaged in the manufacture of flat steel products. Jisco's results reflect the firm trend in flat steel prices in both domestic and international markets. Meanwhile, UTI has approved financial restructuring package w.e.f 1 October 2002. The impact of the said restructuring in the current quarter has been considered, Jisco has said. However, the impact pertaining to prior periods will be considered at the year-end.
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