JSW steel reports Rs.328.18 crore net profit in Q3

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Mumbai, Jan 28 (UNI) Steel major JSW Steel Limited today reported a net profit of Rs.328.18 crore on a net sales of Rs 2563.08 crore for the third quarter of the current fiscal.

The company in a release here said the results were impressive due to 13 per cent growth in volume of sales and better efficiency despite increase in input costs due tosurging prices of iron ore, coke and ferro alloy at the same time. The profit from corresponding quarter of last year was Rs 362.15 crore on turnover of Rs 2317.34 crore.

The Operational Performance of the Company indicated an increase in cost of iron ore and imported coke which went up by 75 per cent and 57 per cent respectively compared to the corresponding quarter of last year, yet the Company achieved further efficiencies in yield and other operational parameters like ; fuel consumption, fluxes consumption, LD gas recovery, power consumption, etc. These efficiencies along with an increase of four per cent in realisation and the favourable sales mix aided the Company to neutralise the cost push impact to a certain extent, the Company said.

The Financial Performance indicated the interest cost lower by 14 per cent relative to corresponding quarter of last year as the Company could reduce its weighted average cost of borrowings to 7.73 per cent as on December 31, 2007 (8.14 per cent on March 31, 2007).

The adjusted debt gearing was 0.74 and the Company repaid Rs 285 Crore during the quarter (Rs.764 Crore during FY 2007-08).

The Company announced the consolidated financial results including US operations where it achieved consolidated Net Revenue of Rs.2841.90 Crore, EBIDTA of Rs.793.70 Crore and a net profit of Rs.270.06 Crore. The consolidated net profit was lower relative to that of stand alone Company mainly due to unrealised contribution on Slabs/Coils attributable to the outstanding inventory supplied to US/UK operations which would only accrue on sale in the following Quarter.


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