A combination of lower steel prices and higher finance costs saw JSW Steel, a leading steel manufacturer, report a decline of 30 per cent in its net profit for the third quarter of 2014-15 at Rs.329 crore. During the quarter, JSW Steel’s sales were down 3.4 per cent at Rs.13,223 crore. “It is a challenging period for the global steel industry with structural overcapacity and surging imports into various countries. The industry has been characterised by lower prices, slowing demand and dumping of steel,” Seshagiri Rao, Joint Managing Director and Group CFO, JSW Steel told a press conference.
The finance costs rose 18 per cent to Rs.936 crore while the operating profit at Rs.2,297 crore declined five per cent. Operating margin was at 18.4 per cent. Mr. Rao said the company’s operating profit per tonne declined to Rs.7,000 (Rs.7,700).