Jindal Steel and Power (JSPL) reported 6 per cent increase in its net profit for the second quarter ended September 30. The company’s net profit stood at Rs 808 crore during the second quarter as compared to Rs 762 crore in the same period last year.

The firm hopes that demand in the steel segment would surge in next quarter as market has started to show signs of recovery.

JSPL reported 14 per cent decline in sales to Rs 2,445 crore as demand from the construction segment did not remain healthy. Over all steel prices declined almost 40 per cent till date, affecting all steel manufacturers in India.

Naveen Jindal, the Managing Director of JSPL, said, "Net realisation from sale of steel products dropped during the quarter mainly due to drop in steel prices. Power business, on the other hand, is growing steadily and contributing significantly to the bottom-line."

Meanwhile, Jindal Power (JPL), a wholly-owned subsidiary of JSPL, reported a net profit of Rs 515 crore during the second quarter. The firm also plans to float an IPO in January 2010 for raising funds for its 2,400 megawatt super thermal power project in Chhattisgarh.