Mumbai, Jan. 31: Jindal Vijaynagar Steel Ltd (JVSL), following the merger of Jindal Iron and Steel Company (Jisco) and Jindal South West Holdings with itself, has posted a net profit of Rs 225.11 crore for the third quarter ended December 31.

The scheme of amalgamation of Jisco, Jindal South West and JVSL, which was earlier approved by Mumbai High Court, has also been sanctioned by Karnataka High Court on January 26.

JVSL said the volume growth, benefits of vertical integration and the merger with erstwhile Jisco?s steel business helped the company post strong numbers.

Gross turnover during the quarter was Rs 2300.57 crore (Rs 871.01 crore), while it was Rs 5941.04 crore (Rs 2544.58 crore) for the nine-month period. Net profit for the nine-month period was Rs 465.97 crore.

During the quarter, debt reduction was at Rs 251 crore (Rs 622 crore for the nine-month period). While production of crude steel was up 40 per cent, that of hot-rolled coils rose 35 per cent.

The company refinanced Rs 500 crore existing debt by availing of a term-loan from State Bank of India and its associates at an interest rate of 7.25 per cent. Exports also rose significantly and represented 44 per cent of the topline for the nine-month period.

The merger will enable the company to leverage the improved financial profile for further organic and inorganic growth.

JVSL has received lenders? approvals to expand the capacity of the steel plant (up to slab stage) to 3.8 million tonnes from 2.5 million tonnes at an estimated cost of Rs 1,275 crore for which financial closure is expected by the month-end. The pellet plant capacity is also being hiked to 5 million tonnes from 4.2 million tonnes at an estimated cost of Rs 36 crore. Even as the capacity expansion is expected to be completed by September this year, steel expansion project will be operational by March 2006.