JSW Steel has reported 84 per cent fall in September quarter net profit at ₹117 crore against ₹749 crore recorded in the same period last year, as steel prices dropped sharply in the quarter under review.

Sales were down at ₹10,743  crore (₹13,692 crore). Steel production fell one per cent to 3.19 million tonnes in the September quarter as the company under took partial shut down for maintenance work at its factory. However, on a sequential basis it managed to register a profit against a loss of ₹107 crore recorded in June quarter due to change in product mix and lower raw material prices.

Speaking to media here on Wednesday, Seshagiri Rao MVS, Joint Managing Director, said though the cost of production was down due to softer raw material prices, realisation was fell 21 per cent due to weak demand leading to lower selling price. JSW Steel has tied up funds for capital investment of ₹5,200 crore this fiscal and its production capacity is expected to increase gradually by 4 million tonnes per annum to 18 mtpa from December quarter. The company will bid for the 15 category 'C' mines being put on auction in Karnataka between next month and March next year. It expects to start coal mining in Jharkhand by 2019. Till such time, the company will continue to import coal. It has 4 lakh tonnes of coal inventory to feed its Vijayanagar plant in Karnataka.

On the impact of safeguard duty, Rao said China has dropped HR coil prices by $30-$40 a tonnes since the duty came into effect, thus almost neutralising the impact of fresh levy. The industry has moved the Government to extend the duty to cover the entire value chain.

Shares of the company were up one per cent at ₹906 on Wednesday.

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