India’s JSW Steel crude output up 27% in April-June 2012

JSW Steel has reported its highest ever quarterly crude steel production of 2.143 million tonnes in its fiscal first quarter ending June 30, up 27% on the same period in 2011.

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Group ceo Seshagiri Rao said 1.684 million tonnes were produced over the same period in 2011.

“The current steel market is challenging and demand is sluggish across the world due to a slowing global economy,” Rao said.
The company’s standalone turnover and net sales for the quarter stood at Rs99.10 billion and Rs90.30 billion, respectively, up 30% and 28% over the corresponding quarter last year, due mainly to higher volumes and improved sales.

The operating earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter was Rs17.73 billion, up 24% over the corresponding quarter last year and the company posted a net profit after tax of Rs2.69 billion, JSW said.

“The company’s sales of flat rolled [products] were recorded at 1.672 million tonnes in Q1, an increase of 30%, as compared to 1.283 million tonnes recorded in the same period last year. Long rolled [output] was recorded at 383,000 tonne in Q1, an increase of 31%, against 292,000 tonnes recorded in Q1 of the last fiscal year,” the company said.

However, semis production dropped 61% to 54,000 tonne in the fiscal first quarter, compared with 139,000 tonne a year earlier.

“The availability and quality of iron ore remained a bottleneck during Q1 in the 2012-13 fiscal year, due to a delay in the reopening of category A mines, which led to loss of production and increase in cost,” Rao said.

He added that the “Vijayanagar plant works operated at about 80% capacity utilisation during Q1”

“On the consolidated basis the company did well in the US and Chile operations, which includes Chile iron ore mines, US plate and pipe mill operations and US coal mines. All together the consolidated Ebitda was Rs19.08 billion; a growth of 28% growth,” Rao said.

Chile Iron ore mines made shipments of 340,000 tonnes of iron ore concentrate, while it sold 9,000 tonnes of coal during its first quarter from US coal mines and produced 98,000 tonnes of plate and 22,000 tonnes of pipes at it’s US operatons.  However, despite improving output the US division made a loss.