Leading alloy-maker JSW Steel on Wednesday reported a net loss of Rs 107 crore on a consolidated basis for the first quarter ended June 30, 2015. The Sajjan Jindal-led firm had clocked a net profit of Rs 657 crore in the year-ago period, it said in a BSE filing.
The total consolidated income of the company too declined by 13 per cent to Rs 11,601 crore in April-June quarter of this fiscal from Rs 13,254.07 crore in the same quarter of the 2014-15 fiscal.
Company’s total expenses, however, fell to Rs 10,887.42 crore from Rs 11,437.80 in the reported quarter. During the April-June quarter, the company’s crude steel production grew by 10 <g data-gr-id="31">per cent</g> to 3.4 million tonnes (mt) from 3.1 mt in the year-ago period. Saleable steel production was up 8 <g data-gr-id="32">per cent</g> to 3.11 mt from 2.88 mt during the same period.
The firm strategically reduced share of exports to 14 <g data-gr-id="27">per cent</g> of total sales during April-June and despite intensifying competitive intensity due to influx of imports, domestic sales volume grew 29 <g data-gr-id="28">per cent</g> year-on-year to 2.66 mt, it said. “More importantly, with ramp up of downstream facilities the share of value added and special steel products improved to 35 <g data-gr-id="29">per cent</g> of total sales, during the quarter,” it added.
The firm said implementation of the capacity expansion project, from 3.3 mt per annum to 5 <g data-gr-id="20">mtpa</g>, at <g data-gr-id="21">Dolvi</g> in Maharashtra and other ongoing <g data-gr-id="30">projects</g> are progressing satisfactorily and are likely to complete as per schedule.
Projecting a weak economic scenario, JSW Steel said on the outlook: “The IMF has revised down its forecast for world economic growth for calendar year (CY) 2015 from 3.5 to 3.3 <g data-gr-id="25">per cent</g>. Global economic outlook has moderated with slower growth in advanced economies in H1 2015 and
continued <g data-gr-id="24">slow down</g> in emerging market and developing economies.”
JSW Energy arm offloads 26% stake in SA firm
JSW Energy Ltd on Wednesday said its subsidiary has sold 26 per cent stake in South African Coal Mining Holdings Ltd (<g data-gr-id="54">SACMH</g>) to meet regulatory norms. “JSW Energy Natural Resources South Africa (PTY), a step down subsidiary of the company in South Africa has disposed of 26 <g data-gr-id="56">per cent</g> stake in its subsidiary, South African Coal Mining Holdings (<g data-gr-id="55">SACMH</g>),” JSW Energy Ltd informed the BSE. After the stake sale, PTY’s stake in <g data-gr-id="57">SACMH</g> will reduce to 67.25 per cent from 93.27 per cent. According to the statement, the disposal is to comply with the black economic empowerment requirements mandated by the Department of Mineral Resources (“DMR”), requiring the issued shares in the company to be owned by historically disadvantaged South Africans (“HDSAs”).