BENGALURU (Reuters) -JSW Steel, India’s largest steelmaker by capacity, reported a second-quarter profit on Friday, helped by robust domestic demand and lower input costs.
The company reported a consolidated net profit of 27.60 billion rupees ($332.15 million) in the quarter ended Sept. 30 from 8.48 billion rupees loss a year earlier.
Total revenue from operations rose 6.7% to 445.84 billion rupees. Total expenses slipped nearly 6% due to an almost 10% contraction in key raw material costs.
The government’s focus on infrastructure and positive consumer sentiment are driving investments, the company said in a statement.
Total steel sales in the second quarter increased 10% to 6.34 million tonnes, with domestic sales rising 8%. Exports, at 690,000 tons, constituted 11% of sales from the India operations, the company said.
The demand for steel remained strong in the quarter as construction and infrastructure-related activities continued amid weak monsoon, analysts said. Further, lower costs of coking coal, a key raw material for steel companies, helped the profit growth, they added.
Last month, India imposed an anti-dumping duty on some Chinese steel for five years after finished steel imports from China surged in April-July period.
“Downside risks to global growth remain, but the odds of a hard landing have receded,” JSW Steel said, adding that moderating inflation and improvement in global demand will aid recovery.
The company, however, flagged concerns over the conflict in the Middle East.
Shares fell as much as 2.2% during the session but pared losses after the result. They ended down 1.4%.
($1 = 83.0941 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; editing by Eileen Soreng)
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