Sajjan Jindal-led JSW Steel today said it is evaluating various opportunities for acquisitions to achieve the company's target of becoming 40 million tonnes steel player.
"We want to be 40 MT steel player and increase our market share of 13.9 per cent. We would like to grow and evaluating various opportunities, both organic and inorganic," JSW Steel Joint MD and Group CFO Seshagiri Rao told reporters here.
The firm is a leading integrated steel company in India with an installed capacity of 18 MT per annum (MTPA).
Responding to media reports JSW Steel may bid for controlling stake in Bhushan Steel, Rao said, "We will evaluate the opportunity if it is available. Tendering will be done by banks." The company today reported a consolidated net profit of Rs 730 crore for the September-December quarter on the back of higher income from operations and improved working of its subsidiaries in India and abroad.
The company had posted a consolidated net loss - after tax, after share of loss of non-controlling interest and share of loss of associates/joint ventures -- of Rs 709 crore in the year-ago period.
The consolidated income from operations during the quarter increased by 59.6 per cent to Rs 15,312.3 crore, over Rs 9,589.2 crore in the year-ago period.
The company said that the "current quarter was marked by a drag on steel demand due to liquidity issues after demonetisation that led to lower volume of production and sales subsequentially".
Commenting on steel price outlook, Rao said, coking coal price for 1QCY17 contract has been settled at USD 285 per tonne and seaborne Iron ore prices continue to firm up. This is expected to keep steel prices range-bound. Trade remedial measures will continue to influence global steel trade.
The rising imports of steel is a cause of concern as domestic steel demand remains weak. During the 9-month period of FY17, crude steel production increased by 8.8 per cent YoY whereas apparent finished steel consumption grew by just 3.4 per cent YoY.
At the same time, the imports have surged to 10 MTPA on an annualized basis in Dec'16, up by 33 per cent over Nov'16; back to pre MIP levels. This necessitates a serious relook at the trade remedial measures for appropriate revision to stem the surge in imports.
The tepid steel demand reflects weak investment cycle, and the digital push and re-monetization is expected to restore normalcy in demand. The upcoming budget will be key with regard to government's policies to stimulate infrastructure investment and consumption growth via higher public spending and lower tax rates, he said.
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