JSW Steel Q4 net profit declines 3%

JSW Steel posted a marginal decline in its consolidated net profit.

Written by Agencies | Mumbai | Published:May 14, 2012 9:11 pm

JSW Steel today posted a marginal decline of over 3 per cent in its consolidated net profit to Rs 769.73 crore for the quarter ended March 31,2012,largely due to the loss posted by its subsidiary JSW Ispat.

The Sajjan Jindal-led firm had reported a net profit of Rs 793.63 crore during the corresponding period of FY’11.

India’s third largest steel producer,however,posted highest ever net sales for a quarter in the January-March period at Rs 10,152.68 crore,a growth of 40.83 per cent,it said in a filing to the BSE.

It had a net sales of Rs 7,209.35 crore in the last quarter of FY’11.

Besides the steelmaker reported a net foreign exchange gain of Rs 200.14 crore in the quarter,which guided the company to offset the impact of the Rs 141.29 crore loss of JSW Ispat.

For the full year 2011-12,the company reported a decline of over 69 per cent in its consolidated net profit to Rs 537.68 crore vis-a-vis Rs 1,753.98 crore of FY’11,as it was severely impacted by the iron ore crisis in Karnataka during the second and third quarters of the fiscal.

Consolidated net sales of JSW for the FY’12 were up over 40 per cent to Rs 34,123.65 crore over the previous year’s sales of Rs 23,861.57 crore. Company’s interest costs were up 34.62 per cent during the year to Rs 1,427.30 crore.

Although hit by the iron ore crisis in last fiscal,the company managed to achieve its revised production guidance of 7.82 million tonnes (MT) in a year.

“If the iron ore availability was not a constraint,the company would have surpassed the initial guidance of 8.75 MT in 2011-12… The company received 75 per cent iron ore at plant’s site as on March,2012,out of total iron ore of 10.7 MT secured in e-auctions,” it said in a separate statement.

For the current fiscal,the company has kept a guidance of producing 9 MT of steel,as it hopes that the Supreme Court would allow allowing mining in category A and B mines (as classified by a court-appointed panel) in Karnataka,which will increase iron ore availability in the state,it added.

The Sajjan Jindal-led firm operates 10 million tonnes (MT) in a year capacity plant at Vijayanagar of Karnataka and 1 MT plant at Salem in Tamil Nadu. Besides,its subsidiary JSW Ispat has a production capacity of 3.2 MT.

Shares of the company closed today at Rs 619.55 apiece on the BSE,down 1.20 per cent from the previous close.

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