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In trying operating conditions, which included poor iron ore supply and a high coal import bill, JSW Steel managed to eke out standalone sales growth of 36 per cent.
But this didn't stop its profits from falling sharply.
The sales growth came from a combination of 20 per cent increase in steel sales volumes (aided by new capacity in mid-2011) and higher realisations too.
A weak rupee, which made steel imports more expensive, lent support to domestic steel prices.
This helped offset the impact of a 37 per cent higher raw material bill (including power and fuel costs).
As a result, the company's operating profits rose by 26 per cent during the quarter. Operating margins slid by one percentage point to 10.3 per cent.
Interest rates
The villains of the piece were higher interest rates and forex losses. Since the company has opted for debt-fuelled capacity additions, the interest bill more than doubled to Rs 281 crore.
Forex losses on short-term borrowings to fund operations, at Rs 500 crore, also delivered a body blow to the numbers. Such losses did not exist last year, thanks to a strong rupee.
Coming to company's rescue however was a one-off tax credit of Rs 141 crore during the quarter.
This useful boost enabled net profit after taxes to end 56 per cent lower at Rs 168 crore.
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