JSW Steel Q2 net profit up; rupee appreciation helps

Business

oi-Sneha

By Sneha B K

Updated: Monday, October 29, 2012, 16:51 [IST]

JSW Steel reported a net profit of Rs 822 crores up by 547% over the corresponding quarter of previous year mainly due to higher volumes and rupee appreciation impact.

Due to 6.4% appreciation in the value of the rupee against US Dollar during Q2 FY 2012-13, the company gained Rs 422 crores on restatement of foreign currency monetary items.

The company's net sales for the quarter stood at Rs 8,834 crores showing a growth of 16% over the corresponding quarter of previous year on higher volumes

The Company's net total debt gearing stood at 0.75 (same as on 30.06.2012) and the weighted average interest cost of debt is at 8.44% (vis-à-vis 8.12%, as on 30.06.2012).

Also, the company has received approval from BSE & NSE for the proposed merger of JSWIL with JSW Steel Limited.

In a statement, JSW Steel said: "Global economic situation continues to remain challenging with increasing uncertainties, impacting the prospect of economic growth across geographies. IMF projects the world economy to grow at 3.3 per cent. The Indian economy is expected to get back in growth mode post recent economic reform announcements."

Shares of the company rose by 1.44% to Rs 743 on BSE at 9.40 am IST.

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