Mumbai: JSW Steel Ltd, India’s No. 3 steel producer, on Thursday posted a consolidated net loss for the quarter ended March, but forecast a 78% rise in output for 2009/10, pushing the shares up more than 17%.
For 2009/10, the company expects production to rise to 6.1 million tonnes on ‘strong’ signs of revival in demand.
“The apparent consumption exceeding the crude steel production world wide establishes the fact that the de-stocking cycle is coming to an end,” the company said in a statement.
The re-pricing of long-term coking coal and iron ore, key inputs to the steel industry, at significantly lower levels in fiscal 2009/10, will help the company improve its margins even in as steel prices remain stable, it added.
For the quarter ended March, the company reported a net loss of Rs399.3 million, compared with a net profit of Rs3.57 billion last year.
Sales for the period fell 16.2% to Rs35.68 billion. Analysts had estimated a 25% drop in sales to Rs31.4 billion.
The company’s shares ended 12.8% higher at Rs429.35 in a firm Mumbai market.