JSW Steel Ltd Q4 net profit down 61.56 per cent

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JSW’s standalone net profit also declined by nearly 24 per cent at Rs 573.23 crore during the last quarter vis-a-vis Rs 752.18 crore of Q4 of FY’12,it said in a filing to BSE.

“The (consolidated) net profit was lower by 62 per cent on account of higher interest and depreciation in standalone company and the tax provision is increased as the surcharge was increased from 5 to 10 per cent in the India’s Union Budget 2013-14,” JSW said in a separate statement.

According to the company,JSW’s depreciation charges (at Rs 523.43 crore) as a standalone firm rose by nearly 11 per cent,while its interest outgo increased by over 20 per cent at Rs 442.50 crore during the last quarter.

On a consolidated basis,its net sales declined by nearly 3 per cent to Rs 9,851.54 crore in the last quarter as compared to net sales of Rs 10,152.68 crore of Q4 of FY’12. Besides,its total expenditure at Rs 8,759.67 crore accounted for 87.53 per cent of its net sales.

For the full year ended March 31,2013,JSW reported over 79 per cent decline in its consolidated net profit at Rs 963.11 crore due to a host of reasons,including higher

depreciation,increased interest outgo and tax payments.

“In spite of paying higher prices in the e-auctions for iron ore that too for inferior quality,the company could report improved financial performance majorly due to sourcing efficiency in coal,optimising blend of coal for coke making,and increased waste heat utilisation in various process units across plants,” JSW said.

According to the company,it sold 8.87 million tonnes (MT) of steel in the last fiscal,achieving a 14 per cent growth. Its production also increased by 15 per cent at 8.52

MT in the last fiscal.

For the current fiscal,JSW is aiming to produce 9 per cent more steel at 9.25 MT and is looking to increase its steel sales by 10 per cent at 9.75 MT.

Shares of the company were marginally up at Rs 685.35 apiece on BSE in late afternoon trade.