JSW Steel Limited reported highest ever quarterly volume of production and sales in Q3 FY 2011-12. During the quarter the company achieved 1.939 million tonnes of crude steel production.

The growth in volume was 19% in crude steel, 11% in rolled flat products and 31% in rolled long products relative to that of corresponding quarter of previous year.

The company also posted a quarterly sales volume of 1.908 million tonnes with 20% growth over that of corresponding quarter of the previous year.

The capacity utilization in December at Vijayanagar works improved to 84%. During the initial phase of e auctions, the Company faced severe shortage of iron ore at plants due to procedural delays, logistical constraints in movement of the ore even after securing the ore in e auctions. The company participated and bought Iron ore in e auctions though the ex mine price for various grades of ore did not reflect drop in international Platts Index prices. This led to under utilization of production capacity during the quarter. With gradual improvement in receipt of e auctioned material at plant, the company could increase capacity utilization to 84% in December 2011.

The company received 52% iron ore at plant's site as on December 31st 2011 out of total 7.10 million tonnes Iron ore secured in e auctions. Since the usable iron ore out of the balance stock piles for e auction is expected to last only for 3 to 4 months, continuing steel production will be a challenge in case iron ore mining ban continues in the State of Karnataka.

Financial Performance:
The Turnover and Net Sales for the quarter stood at INR 8,497.58 crores and INR 7,859.62 crores, respectively, showing a growth of 35% & 36% over the corresponding quarter of previous year respectively. The EBIDTA for the quarter is INR 1253.38 Crores up by 24% over the corresponding quarter of previous year. The Company has posted a Net Profit after Tax of INR 168.24 crores after considering exceptional item (Foreign exchange loss) of INR 500.11 crores.

Over the last three months value of the rupee has witnessed unusual depreciation against US Dollar. The net loss of INR 500.11 crores on restatement of foreign currency monetary items at close of the quarter has been considered by the Company to be exceptional in nature.