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Business News/ Companies / Company-results/  JSW Steel swings to consolidated net profit of Rs738.1 crore
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JSW Steel swings to consolidated net profit of Rs738.1 crore

In the September 2013 quarter, the company had incurred a one-time forex loss of Rs839 crore

The company’s total saleable steel in the September quarter was at 3.07 mt, down 2% from the same quarter a year ago. Photo: Aniruddha Chowdhury/MintPremium
The company’s total saleable steel in the September quarter was at 3.07 mt, down 2% from the same quarter a year ago. Photo: Aniruddha Chowdhury/Mint

Mumbai: JSW Steel Ltd swung to consolidated net profit of 738.1 crore for the second quarter of 2014-15 from a 129.89 crore net loss a year earlier amid a fall in volumes that indicated slackening demand.

In the September 2013 quarter, the company had incurred a one-time forex loss of 839 crore, it had said in its earnings announcement, as it was not fully hedged against the sharp volatility in the value of the rupee against the dollar.

The company took strength from its superior operating performance.

“We had the highest ever operating earnings before interest, tax, depreciation and amortization (Ebitda) at 2,791 crore," joint managing director and group chief finance officer Seshagiri Rao said. “Automobile sales are doing well. We hope demand will improve after the festive season." 

The company’s total saleable steel in the July-September quarter was at 3.07 million tonnes (mt), down 2% from the same quarter a year ago.

“The global economic recovery has weakened and is now hinged upon US consumption, policy support in Europe and China," JSW said in a statement.

India’s third largest steel maker, with an annual installed capacity of 14.3 mt, reported consolidated net sales at 13,691.76 crore in the September quarter, up 7% from the same period a year ago. A Bloomberg poll of analysts saw net profit at 702.9 crore on net sales of 13,741 crore.

An analyst said the company was on track to improve its margins.

“There are three things that are indicating the margins scenario will get better—that they have a pellet and coke oven facility ramping up in Dolvi and the policy and the macroeconomic outlook is better," said Goutam Chakraborty, metal analyst at Emkay Global Financial Services Ltd, a brokerage.

Rao said the company is set to bid for coal blocks and iron ore mines in the forthcoming auctions.

The company’s net debt stands at 35,756 crore with the debt-to-equity ratio at 1.56.

Shares of JSW rose 2.82% to 1,175.65 on BSE, while the benchmark Sensex traded at 26,57.65 points, up 0.55%.

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Published: 21 Oct 2014, 11:57 PM IST
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