JSW Steel posts Q3 loss of Rs 48 cr

JSW Steel has reported consolidated net loss of Rs 47.89 crore for the third quarter ended in December due to forex losses, higher raw material costs and the hit taken by group firm JSW Ispat Steel.

The company had reported a consolidated net profit of Rs 291.72 crore during the October-December quarter in 2010-11.

Net sales, however, rose 41% to Rs 8,404.66 crore during Q3, 2011-12, due to higher revenues from the steel business, JSW said in a fling to the Bombay Stock Exchange (BSE).

The earnings were marred by foreign exchange loss of Rs 558.72 crore and increase in raw material costs by over 50% to Rs 5,639.38 crore.

JSW's net finance charges also rose by over 80% to Rs 355.74 crore.

These factors also pulled down the company's standalone net profit by about 56% to Rs 168.24 crore, which was declared on January 20.

Moreover, JSW also accounted Rs 92.41 crore loss for its share in subsidiaries, including JSW Ispat Steel, in its consolidated results, the filing added.

JSW Ispat Steel, in which Sajjan Jindal-led firm has over 49% stake, had reported a standalone net loss of Rs 308.57 crore on Wednesday.

JSW Steel's shares closed today at Rs 816.65 apiece on the BSE, down 0.28% from the previous close.