Despite sluggish market conditions, steel major JSW Steel Limited has reported strong 64.25 per cent growth in net profit at Rs 485.16 crore during the quarter ended June 30, 2011 on increased sales volumes and higher product prices.
"Despite the sluggish condition in the steel industry, JSW has come out with good results. The company has reported higher crude steel production and increased sales during Q1 FY 12," JSW Steel's Joint Managing Director and Group CFO Seshagiri Rao told reporters at a press meet here.
The product prices were 5 per cent higher in the first quarter from a year earlier, Rao said.
Total income of the company increased from Rs 4,858.09 crore for the quarter ended June 30, 2010, to Rs 7,455.67 crore for the quarter ended June 30, 2011.
JSW Steel said its consolidated numbers do not include the performance of Ispat Industries Ltd., in which it acquired a controlling stake last December.
On a standalone basis, the company has posted a net profit of Rs 578.32 crore for the June quarter as compared to Rs 350.27 crore in the same period last year.
The steel industry is facing sluggish demand and margins are under pressure. However, cost reduction measures like change in product mix helped it maintain its margins, Rao said.