JSW Steel's Q3 net down 19% on high iron ore price
Despite a challenging business environment, JSW Steel managed to remain profitable during the December quarter, though its profit slipped around 19% to Rs 136.73 crore.
Despite a challenging business environment, JSW Steel managed to remain profitable during the December quarter, though its profit slipped around 19% to Rs 136.73 crore, YoY. The company in a statement said, if not for higher price it had to pay for outsourcing iron ore due to the ongoing mining ban in Karnataka and Goa, profits would have been higher.
JSW Steel's 10 million tonne capacity at Vijayanagar plant in Karnataka has been affected since August 2011 after the Supreme Court put a ban on mining in the state due to environmental related issues.
Sales climbed 5% to Rs 8275 crore as demand improved toward the end of the quarter.
Meanwhile, the company incurred forex loss of Rs 327 crore as Rupee depreciated around 4% against the dollar.
Post earnings announcement, shares of the company were up around half a percent to Rs 867.90.
Going forward, JSW said, pragmatic policies on iron ore mining, speeding up of infra projects and expected interest rate cut by the Reserve Bank of India will boost steel demand. It further said, while the sector is likely to turn around in FY14, imports from countries where India has signed agreements for steel supply, remain a concern for domestic players.