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JSW Steel net dips but declares 80 pc dividend

Written by: Staff

Mumbai, Apr 19 (UNI) JSW Steel today announced a 80 per cent dividend notwithstanding a decline in the company's net profit to Rs 856.53 crore in 2005-06 from Rs 870.11 crore in 2004-05. The company's total income also declined to Rs 6,563.06 crore from Rs 6,698.34 crore in the comparable years.

Besides recommending dividend at Rs 8 per share, the company board of directors, in a meeting today, approved the sale of its 60 MW power plant in Tamil Nadu to Southern Iron&Steel for a sum to be determined by an independent valuer.

JSW steel has decided to participate in a special purpose vehicle for setting up a 2x250 MW power plant at Toranagallu in Karnataka to ensure continuous power supply for its enhanced capacity of 3.8 million tonnes per annum (MTPA), the company informed the BSE. It said it will enter into a joint venture with JSW Energy in the 26:74 equity ratio, adding its share of 26 per cent equity will be worth Rs 124.8 crore.

The company said it has decided to shut down hot rolled mill at Toranagallu for modernisation and to increase capacity from 2 to 2.5 MTPA, adding it will restart operations in mid-May.

The board also decided to consider a comprehensive plan to raise additional resources in view of the significant interest shown by foreign investors to invest in the steel sector due to recent spurt in prices and promising steel Industry outlook, the release added.


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