(Reuters) -India’s top steelmaker JSW Steel reported a nearly four-fold rise in second-quarter profit on Friday, as a surge in sales volumes overpowered the impact of lower prices.
The Mumbai-based company’s consolidated net profit stood at 16.23 billion rupees (about $185 million) for the quarter ended September 30, higher than the 4.39 billion rupees profit a year ago.
The company kickstarts quarterly results for the industry, which has seen steel prices drop despite the Indian government’s import tariff on some steel products.
The company, led by billionaire Sajjan Jindal, posted a 20% rise in sales in the quarter, while capacity utilisation in India, its key market, was at 92%.
That, and high manufacturing activity in the country, helped demand.
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded to 17.4% from 14.2% in the year ago period, but was lower than 18.2% in the previous quarter.
The company incurred a 3.42 billion rupee one-time charge related to the surrender of its Jajang Iron Ore mining lease in the September quarter a year ago.
Its profit before exceptional items and tax grew 107.3% on-year in the latest three-month period.
($1 = 87.9538 Indian rupees)
(Reporting by Manvi Pant and Anuran Sadhu; Editing by Harikrishnan Nair and Mrigank Dhaniwala)
