Saturday, May 19, 2012

JSW Steel Q4 net down 10%, cuts FY13 target by 2 mn tonnes


JSW Steel has reported a standalone net profit of Rs 752 crore for the Jan-March quarter of FY12, down 9.7% as compared to Rs 833 crore in a year ago period. Standalone total income jumped 35.14% to Rs 10,291 crore, Year-on-Year.

The company earned an exceptional gain of Rs 199 crore during the quarter. EBITDA margins declined at 17% versus 22.5% YoY. EBITDA went up 2.34% to Rs 1,618 crore, YoY.

While announcing the results, JSW Steel's chairman and managing director Sajjan Jindal said, "We expect steel production for FY13 to be around 8.5 million tonnes and sales of 9 million tonnes."  He further said the company has cut output by 2 million tonnes on account of the ban on illegal mining in Karnataka.

The steel maker, as ordered by the Supreme Court will face a probe by the Central Bureau of Investigation (CBI) into instances of alleged illegal mining in Karnataka during the tenure of former chief minister BS Yeddyurappa. However, Jindal said that his company will come out clean as they have not indulged in any wrong doing. "We are the victims here," he added.

On the company merging with Ispat Industries earlier this year, Jindal said, "We have cleaned up the entire balance sheet of Ispat and have written off Rs1900 crore of stick assets of the acquired company.  From a strategy point of view, Ispat is a very good investment."

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd


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