Focus on Special Products Helps JSW Steel Post .₹ 714-cr Net
Mumbai: JSW Steel swung to a profit from a year-earlier loss in the third quarter, when the company said it focused on selling more value-added and special steel products as demand in the retail segment was tepid due to demonetisation.
The company posted a net profit of .₹ 714.5 crore for the quarter through December, compared with a loss of .₹ 814.6 crore a year earlier. Total inco- me from operations rose to a record high of .₹ 15,312 crore, nearly 60% more from the year-earlier period.
“Due to demonetisation, retail sales volumes went down by 4% year on year and 12% sequentially, but we made up for them in the OEM (manufacturing) segments,” said Jayant Acharya, director for commercial and marketing. The company produced 3.86 million tonnes of crude steel in the past quarter, an expansion of 43%. Output of saleable steel rose 43%.
Joint MD Seshagiri Rao said the industry will have to bear the full impact of rising raw material prices in the coming quarters. Prices of raw materials for steel, coking coal and iron ore, saw steep rise in prices in 2016. Spot price of coking coal touched $300 a tonne in the second half of 2016. Increasing imports of steel is another problem the domestic industry is facing, he said. “A serious relook at the trade remedial measures for appropriate revision to stem the surge in imports” is required, Rao said.
While reports of the company acquiring majority in debt-laden Bhushan Steel and Monet Ispat have been doing the rounds, JSW said it was looking at achieving its long-term vision of becoming a 40-million-tonne steel company.
But company executives refused to divulge any details. JSW currently has an installed steel making capacity of 18 metric tonnes a year.