The Hindu Business Line : JSW Steel net dips 53% on forex losses

Mumbai, July 31 Saddled with a Rs 363-crore forex loss, JSW Steel Ltd registered a 53 per cent drop in net profit at Rs 219.5 crore for the quarter ended June 30, against Rs 468.45 crore logged in the same period a year ago.

Mr Seshagiri Rao, Director, Finance, said overseas borrowing amounted to $1 billion and the loss was on account of a seven plus per cent depreciation of the rupee.

The exchange difference for the quarter comprising unrealised exchange loss on restatement of foreign currency borrowings, current liabilities and foreign currency convertible bonds, he said.

Asked whether the company was contemplating hiking prices with the three-month voluntary moratorium ending on August 8, Mr Sajjan Jindal, Vice-Chairman and Managing Director, said the Government would understand the compulsions of the industry this time around. The cost of production has gone up by 61 per cent year-on-year and any rise would be reasonable depending on what the customers can pay.

However, net sales for the quarter rose 54 per cent at Rs 3,671.49 crore (Rs 2,385.44 crore).

The company achieved 22 per cent volume growth in crude steel production during the quarter at 0.975 million tonnes as against 0.802 million tonnes.

The volume of saleable steel went up by only 13 per cent due to captive consumption of around 50,000 tonnes of plates/sheets/TMT bars for the purpose of internal expansion projects and accretion in stock of about 1.07 lakh tonnes due to bunching of exports.

The company has reported a consolidated turnover and EBIDTA of Rs 4,456.15 crore and Rs 843.62 crore after incorporating the financials of subsidiaries, joint ventures and associates. The net profit on the consolidated basis at Rs 250.23 crore was also down by 47 per cent.

On Thursday, JSW Steel stock on BSE was down two per cent at Rs 734.40.