Jisco cuts dividend as net plunges

The company has posted a 30.8 per cent increase in its net sales for the 1997-98 at Rs 1,043.38 crore, against Rs 796.62 crore recorded in the previous year.

Interest charges rose 96.72 per cent to Rs 46.88 crore, against Rs 23.83 crore in the previous year. Depreciation provision was also higher at Rs 38.63 crore, versusRs 23.78 crore in the previous year.

The company’s export earnings rose 72 per cent to Rs 171.59 crore, against Rs 99.83 crore in 1996-97.

To broaden its product portfolio, Jisco has tied up with British Steel, the world’s third largest steel company, for producing organic-coated steel products. The 50:50 joint venture will begin operations by September 1999, Jindal said. Volume sales of all the steel majors have seen an increase. But lower realisations have offset the volume increase. In Jisco’s case, however, the volume sales in the range of 26 per cent to 41 per cent had pushed up the sales turnover by 30 per cent. The above-average increase in turnover for India’s biggest re-roller was expected after the closure of the majority of small re-rollers, whose operations had become unviable due to notification on excise duty.