JSW Steel takes a beating on higher input cost

Higher raw material prices of both iron ore and coking coal ate into the margins

Sajjan Jindal’s JSW Steel should soon have two factors working to mitigate its rising expenses, amid volatile coking coal and relatively higher domestic iron ore prices.

Reduction in cost due to implementation of the goods and services tax (GST) and 25 per cent of captive ore supply expected this financial year are likely to bring down expenses in the coming quarters.

“There will be reduction in cost by Rs 500-700 a tonne due to GST. We already passed on the benefit of GST to our customers in July and assuming our suppliers will reduce their cost for us, we will continue to