Jindal Saw today posted a decline of over 47% in net profit at INR 53.73 crore in the second quarter of the current fiscal due to depreciation in rupee against dollar and costlier raw material.

The pipe maker had reported a net profit of INR 102.15 crore in the corresponding quarter of the last fiscal.

Attributing the decline in net profit to price volatility and inadequate availability of raw materials, higher petroleum prices and significant weakness in Indian rupee against the US dollar, it said these "are likely to remain major issues in the short to medium-term".

It said “In addition of this, the global economic turmoil is likely to affect the sector and thus we anticipate that this trend of weakness may continue for some time now.”

Raw material consumption increased to INR 1,002 crore over INR 678 crore in the corresponding quarter last fiscal. Jindal Saw posted FOREX loss of INR 48.29 crore.

Jindal Saw's net sales rose to INR 1,446 crore over INR 801 crore in the July-September quarter of the last fiscal.

(Sourced from PTI)