Gujarat NRE’s net profit sees sharp decline in FY 2011-12

India-based Gujarat NRE Coke Ltd (GNCL) has announced its financial results for the financial year and fourth quarter ended on March 31.
 
The company registered a net profit of INR 30.9 million ($558,189) for the financial year 2011-12, compared to INR 1.02 billion in the previous financial year. Net sales of Gujarat in FY 2011-12 decreased by 13.9 percent year on year to INR 13.72 billion ($247.87 million).
 
In the fourth quarter of the financial year, Gujarat posted a net loss of INR 455 million ($8.21 million) compared to a net profit of INR 516 million in the same quarter of the previous year. The company's net sales in the fourth quarter of FY 2011-12 declined to INR 3.3 billion ($59.62 million), down 28.1 percent year on year.
 
Meanwhile, Gujarat NRE Coking Coal, the Australian subsidiary of Gujarat NRE, announced that it has signed an offtake agreement with India-based steelmaker Jindal Steel and Power Limited to supply 500,000 mt of coal each year for a period of 10 years. Jindal Steel will also buy a nine percent stake in the coking coal producer for a consideration of A$25 million.