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JSW Steel Q2 sales up 53%

JSW Steel Q2 sales up 53%
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First Published: Thu, Oct 08 2009. 04 16 PM IST
Updated: Thu, Oct 08 2009. 04 16 PM IST
Kolkata: JSW Steel Ltd said on Thursday its net July-September realisation stood at Rs27,000 a tonne on increased sales growth.
“In the second quarter our sales grew by around 53% and so our net realisation has increased,” Krishna Deshika, joint group chief financial officer, told reporters.
The firm currently produces 7 million tonnes of steel and it would reach 10 million tonnes by March 2011, he said.
“We are having a comfortable Ebitda level and our operating margins should be higher sequentially,” he added.
No Urgency For QIP
With the increasing sales growth, JSW Steel’s liquidity position has eased considerably and the company is unlikely to raise funds through QIP immediately, Deshika told Reuters.
“We are ready with the placement document but we are yet to decide on timing and exact size of the issue. The liquidity pressure is not there right now, so there is no urgency,” he said.
“Whenever we would raise money through QIP, it would be less than $500 million, by diluting around 8% and we would use the money for debt clearance,” he added.
Currently the company has total debt of around Rs14,600 crore and its board has passed an enabling resolution to raise $1 billion, he said.
Separately, JSW Steel plans to raise Rs6,600 crore via debt for funding its West Bengal steel project, Deshika said.
“The total project cost for the West Bengal steel project is around 11,000 crores (Rs110 billion) of which 60-65% would be raised through debt and the rest through equity,” he said.
The firm also expects financial closure for the project by 2011, he added.
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First Published: Thu, Oct 08 2009. 04 16 PM IST