Saturday, October 22, 2011

JSW Steel Q2 PAT at Rs 127cr, sees moderation in demand

JSW Steel reported net profit of Rs 127.12 crore for second quarter FY12, on stand alone basis.

The profit would have been much higher had the production not cut due to severe iron ore shortage and also the forex translation losses of Rs 512.98 crore due to adverse movement in rupee dollar parity, said Seshadri Rao, CFO of the company.

During the current quarter, the company achieved production of crude steel of 1.738 million tonnes. Production volume grew by 11% in crude steel, 2% in rolled flat products and 30% in rolled long products relative to that of corresponding quarter of the previous year.

The company’s production was lower at least by 4,50,000 tonnes due to acute shortage of iron ore and higher procurement cost of iron ore also increased the cost of production of steel by about Rs1500 per tonne during the quarter.

The Company achieved quarterly sales volume of 1.882 million tonnes, 19% growth in sales volume and 33% in Net sales value, compared to that of corresponding quarter of the previous year.

The Turnover and Net Sales for the quarter stood at Rs 8,242.55 crore and Rs 7,625.06 crores, respectively, showing a growth of 33% over the corresponding quarter of the previous year, mainly due to higher volume and improved sales realization.

The EBIDTA for the quarter is Rs 1,332.95 crore up by 15% over the corresponding quarter of the previous year.

According to Rao, growing economic uncertainty along with high inflationary pressures has marginalized investment and consumption expenditure, leading to a moderation in demand.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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