India's JSW Steel posts 19% sales growth in H1, cautions on rising imports.

India's JSW Steel Sunday posted a 19% year-on-year increase in steel sales to 4.28 million mt for April-September, the first half of its 2012-13 fiscal year.

Sales of flat-rolled products totaled 3.33 million mt, up 21% year on year, while sales of long-rolled products rose 25% over the same period to 790,000 mt, the company said in a statement.

Higher sales volumes led to a 22% year-on-year increase in net sales revenue to Rupees 178.64 billion ($3.3 billion), while after-tax profits surged 55% over the same period to Rupees 10.91 billion. This included an exceptional gain of Rupees 4.22 billion from the restatement of foreign currency monetary items at the end of the period, over which the Indian rupee appreciated 6.4% against the US dollar.

Iron ore supply constraints restricted capacity utilization to 80% at its 10 million mt/year Vijayanagar works in Karantaka over July-September, while its 3.3 million mt/year Dolvi works subsidiary JSW Ispat Steel operated at 78% capacity utilization during this period.

SW Ispat Steel produced 1.33 million mt of hot rolled coils in April-September, the statement added.

Despite persisting uncertainty in the global economic outlook, JSW Steel said it remained hopeful the Indian economy was getting back into "growth mode" following New Delhi's announcement of economic reforms in recent weeks.

However the steelmaker said it remained concerned that rising steel imports from Japan and South Korea under free trade agreements these nations had signed with India. Data from the Indian steel ministry's Joint Plant Committee showed India's steel imports from the two countries totaled almost 1.27 million mt over April-September, up 43% year on year.

The Indian steel industry has witnessed "subdued demand growth" of 2.8% over July-September, compared with 7.7% over April-June, the steelmaker noted.

It expected domestic steel demand to remain "steady" but added rising imports and constraints in availability of mineral resources would be "major deterrents" putting Indian mills at a disadvSingapore (Platts)--29Oct2012/250 am EDT/650 GMT

India's JSW Steel Sunday posted a 19% year-on-year increase in steel sales to 4.28 million mt for April-September, the first half of its 2012-13 fiscal year.

Sales of flat-rolled products totaled 3.33 million mt, up 21% year on year, while sales of long-rolled products rose 25% over the same period to 790,000 mt, the company said in a statement.

Higher sales volumes led to a 22% year-on-year increase in net sales revenue to Rupees 178.64 billion ($3.3 billion), while after-tax profits surged 55% over the same period to Rupees 10.91 billion.

This included an exceptional gain of Rupees 4.22 billion from the restatement of foreign currency monetary items at the end of the period, over which the Indian rupee appreciated 6.4% against the US dollar.

Iron ore supply constraints restricted capacity utilization to 80% at its 10 million mt/year Vijayanagar works in Karantaka over July-September, while its 3.3 million mt/year Dolvi works subsidiary JSW Ispat Steel operated at 78% capacity utilization during this period.

SW Ispat Steel produced 1.33 million mt of hot rolled coils in April-September, the statement added.

Despite persisting uncertainty in the global economic outlook, JSW Steel said it remained hopeful the Indian economy was getting back into "growth mode" following New Delhi's announcement of economic reforms in recent weeks.

However the steelmaker said it remained concerned that rising steel imports from Japan and South Korea under free trade agreements these nations had signed with India. Data from the Indian steel ministry's Joint Plant Committee showed India's steel imports from the two countries totaled almost 1.27 million mt over April-September, up 43% year on year.

The Indian steel industry has witnessed "subdued demand growth" of 2.8% over July-September, compared with 7.7% over April-June, the steelmaker noted.

It expected domestic steel demand to remain "steady" but added rising imports and constraints in availability of mineral resources would be "major deterrents" putting Indian mills at a disadvantage to global producers.antage to global producers.


Source : platts.com