Fo­cus on Spe­cial Prod­ucts Helps JSW Steel Post .₹ 714-cr Net

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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.

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