October 08, 2008

JSW Steel net profit in Q3 dips by 9.3% YoY

JSW Steel Ltd has announced the following unaudited results for the quarter ended December 31st 2007.

JSW Steel has posted a net profit after tax of INR 3,281.8 million for October to December 2007 quarter down by 9.3% YoY as compared to INR 3,621.5 million in October to December 2006 quarter. Its total income has increased from INR 23,173.4 million October to December 2006 quarter to INT 25,981.9 million for October to December 2007 quarter.

JSW's costs of iron ore and coal surged by 75% and 57% respectively in the quarter from a year ago, while total raw material costs jumped by 30% to INR 14 billion. Other expenses climbed by 50% to INR 3.95 billion. Profit margin before tax narrowed to 18% from 23%.

JSW has increased prices in January 2008 to cover higher raw material costs and forecast a 10% jump in rates for the January to March 2008 quarter.

Surging demand in China may help support demand for steel even as a recession looms in the US. Mr Sajjan Jindal VC of JSW Steel said that “The US and EU are not the growing markets for steel. If at all there's a recession in the US, the impact will be minimal.''