JSW Steel net jumps 160%

BS 200 SCORECARD

Higher volumes and better sales realisation have enabled JSW Steel to post a net profit of Rs 362.15 crore in the third quarter ended December 31, 2006, up 160 per cent from the corresponding previous quarter.

Its income from operations during the period rose to Rs 2,301.50 crore, up 51.17 per cent over the previous corresponding period.

During the quarter, the company completed the commissioning of all facilities taken up under the 1.3 mtpa expansion project, thereby increasing slab making capacity to 3.8 mtpa from 2.5 mtpa.

Net profit grew 97.09 per cent at Rs 878.75 crore for the nine month period ended December 31, 2006.

Total income grew 31.87 per cent to Rs 6,091.27 crore.

Sajjan Jindal, vice-chairman and managing director, JSW Steel, said, "Crude steel production went up by 28 per cent, while saleable steel output was up 23 per cent. Reduction in fuel costs and coke consumption also helped the company achieve better margins. EBIDTA margins have swelled to 34.9 per cent."

The firm hiked captive power consumption to 80 per cent from 61 per cent. "We are expecting a major benefit accruing in the fourth quarter of the current financial year when our pellet expansion project will establish connectivity to the main plant."

Jindal noted that the steel market had remained stable in the last quarter despite heavy influx of steel from China. In the immediate future, Chinese exports are expected to slow down drastically due to increasing government restrictions.