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JSW Steel Q3 PAT slips 56% on high fuel, input cost
Costlier raw material and rise in fuel costs have eaten out JSW Steel's December quarter profit as the Mumbai-based steel maker reported a 56% dip in net profit to Rs 168 crore year-on-year.
Costlier raw material and rise in fuel costs have eaten out JSW Steel's December quarter profit as the Mumbai-based steel maker reported a 56% dip in net profit to Rs 168 crore year-on-year. Sales, however grew 35% to Rs 7,877 crore year-on-year due to higher steel prices and capacity additions.
These numbers are lower then the CNBC-TV18 poll which had estimated the company to post RS 297.6 crore net profit and sales at Rs 8,096 crore.
The company in a statement mentioned that it suffered a forex loss of Rs 500 crore as the rupee weakened against the dollar during the quarter under preview.
Shares of the company slipped 3% to Rs 648 post the result announcement.
Seshagiri Rao, joint managing director and group CFO of JSW while addressing media said that the company's crude production went up 19% to 1.939 metric tones versus 1.636 metric tones y-o-y as their 10-million tonne Vijaynagar plant in southern Karnataka operated at 90%. The company has tied up iron ore supplies for the plant till May, he said.
But JSW has cut its production and sales forecast for the current fiscal year by 14% and 13%, respectively, late last year, due to acute shortage of iron ore after the Supreme Court put an interim ban on mining in Karnataka.
