JSW Steel reports Q3 net profit of Rs 467 crore

Company had posted a net loss of Rs 74 crore in the corresponding period of the previous financial year

Riding on a 51% jump in sales, JSW Steel today reported a consolidated net profit of Rs 466.49 crore for the quarter ended December 31.

The company, led by Sajjan Jindal, had posted a net loss of Rs 73.70 crore in the corresponding period of the previous financial year.

Net sales climbed to Rs 13,383.38 crore from Rs 8,866.20 crore a year earlier as export of steel products more than doubled, JSW Steel said in a filing to the BSE.

The company said after the approval of the Bombay High Court in May last year, the merger of JSW Ispat Steel became effective from July 1, 2012, and the results are not fully comparable with corresponding periods of the previous year.

Total expenditure during the quarter rose to Rs 12,019.16 crore, accounting for almost 90% of net sales.

On a standalone basis, the company reported a net profit of Rs 652.15 crore and net sales of Rs 136.73 crore.

In a separate statement, the company said it achieved the highest-ever exports of 1 million tonnes, accounting for 60% of India's overall steel exports in the quarter.

It produced 3.19 million tonnes of crude steel and sold about 3.08 million tonnes.

"India continues to witness a challenging macro-economic environment with weak industrial growth and drying up of the investment pipeline", the company said in its outlook.

However, the government has taken steps to clear major projects, which are key to revival of the investment cycle, it said.

"With expected commencement of investments in industrial and infrastructure projects post-general elections, Indian steel demand is expected to improve in next fiscal," it added.

JSW Steel shares gained 1.61% to Rs 930 at the close on the BSE.