JSW Steel today reported a consolidated net loss of Rs 381.82 crore for the quarter ended June 30,2013,mainly due to hefty foreign exchange loss of Rs 862 crore. The Sajjan Jindal-led company had reported a net profit of Rs 49.65 crore in April-June quarter of 2012-13. The total income from operations showed a marginal increase of 3.64 per cent at Rs 10,270.66 crore in the quarter under review,the company said in a statement. Its total income during the corresponding quarter of the previous fiscal stood at Rs 9,909.89 crore.
JSW Steel,however,said: “These results are reported after giving effect to the Scheme of Amalgamation and Arrangement between the Company and JSW Ispat Steel and others,which became effective on 1st June,2013.”The figures for the corresponding quarter are not strictly comparable with that of the current quarter as the effect of implementation of the Scheme is included in the current quarter figures.” The total expenses of the steel maker increased by 7.10 per cent in the first quarter of the current fiscal at Rs 9141.57 crore against Rs 8534.81 crore during the same period a year ago.
Due to the unusual depreciation in the value of the rupee against US dollar during the quarter,there was a net translation loss of Rs 862 crore on restatement of foreign currency monetary items at close of the quarter. The company has considered this loss to be exceptional in nature. Commenting on the performance,Company’s Joint Managing Director and Group CFO Seshagiri Rao said,”It is commendable to show volume growth in these challenging times when Indian steel demand grew only 0.3 per cent during April-June 2013,and simultaneously registered an improved operating margin of 18.7 per cent sequentially from 18.3 per cent in Jan-March 2013.”
In spite of an acute shortage of iron ore,unreasonable prices in e-auction due to shortage of ore,falling global steel prices and threat of imports from countries enjoying concessional duties under FTA,the company focused on cost reduction with a change in coal blend,improved fuel efficiency,use of waste gases and productivity improvements,he said. During the quarter,the Company reported a 34 per cent jump in total Crude Steel production of 2.86 million tonnes (MT) during the quarter against 2.14 MT in the previous quarter,while Saleable Steel sales volume stood at 2.55 MT against 2.11 MT in the corresponding quarter previous year. The shares of the company closed at Rs 573.15 apiece,up 7.40 per cent from the previous close on the BSE.