JSW Steel reports net profit of Rs 691.25 crore in Q2 FY 12-13

JSW Steel today showed a robust performance by posting consolidated net profit of Rs 691.25 crore in the Q2 FY13 as compared to net loss of Rs 669.32 crore in the same period last year.

It also registered a net profit of Rs 741 crore in H1 FY13 as against net loss of Rs 184.16 crore in the same period last year.

For Q2 FY 13, the company's net sales increased by 16 per cent to Rs 9,475 crore as compared to FY12. Net sales in H1 FY13 increased by 24 per cent to Rs 19,377 crore as compared to H1 FY12, a company statement issued here said. Operating EBITDA for Q2 FY13 was Rs 1,531 crore and for H1 FY13 at Rs 3,440 crore.

The company's consolidated net total debt gearing stood at 1.04 (as against 1.09, as on 30.06.2012), it said. Due to constraint in iron ore supplies, the company could operate at about 80 per cent capacity utilisation during Q2 FY13. The company reported production and sales volume of 2.17 million tonnes for Q2 FY13.

Net sales on stand alone basis for the quarter stood at Rs 8,834 crore showing a growth of 16 per cent over the corresponding quarter of previous year on higher volumes. The operating EBIDTA for the quarter is Rs 1,525 crore, up 18 per cent over the corresponding quarter of previous year.

Due to 6.4 per cent appreciation in the value of the rupee against US Dollar during Q2 FY 2012-13, the gain of Rs 422 crore on restatement of foreign currency monetary items at close of the quarter credited to profit & loss account, has been considered by the dompany as exceptional in nature. The company posted profit of Rs 822 crore up by 547 per cent over the corresponding quarter of previous year mainly on higher volumes and rupee appreciation impact, it said.

The company said it has commenced Module-5 & 6 of phase 2 of Beneficiation Plant-2 during September 12, at its Vijayanagar works. The company has taken shutdown of its Hot Strip Mill No 2 at Vijayanagar from September 24 to enhance its capacity from 3.5 MTPA to 5 MTPA. This mill recommenced operations ahead of schedule with enhanced capacity on October 14.

Commenting on the outlook, the company said, the global economic situation continues to remain challenging with increasing uncertainties, impacting the prospect of economic growth across geographies. Indian steel industry has witnessed a subdued demand growth of 2.8 per cent during the period Jul-Sept 2012 vis-a-vis 7.7 per cent in the previous quarter, coupled with rising imports mainly from FTA countries.

Whilst, domestic steel demand is expected to be steady, rising imports and availability of mineral resources will be major deterrents depriving Indian steel industry a level playing field vis a vis their global peers. The company said it has received approval from BSE & NSE for the proposed merger of JSWIL with JSW Steel Limited.