JSW Steel lost 3.47% to Rs 1,185 at 11:31 IST on BSE after the company announced Q4 result after trading hours on Tuesday, 27 May 2014.
Meanwhile, the BSE Sensex was down 6.67 points, or 0.03%, to 24,542.84
On BSE, so far 50,315 shares were traded in the counter, compared with an average volume of 99,301 shares in the past one quarter.
The stock hit a high of Rs 1,227 and a low of Rs 1,172.60 so far during the day. The stock hit 52-week high of Rs 1,295 on 26 May 2014. The stock hit a 52-week low of Rs 451.50 on 19 August 2013.
The stock had outperformed the market over the past one month till 27 May 2014, rising 10.03% compared with 8.2% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 43.23% as against Sensex's 16.97% rise.
The large-cap company has an equity capital of Rs 241.72 crore. Face value per share is Rs 10.
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JSW Steel's consolidated net profit rose 63.16% to Rs 482.83 crore on 44.68% rise in total income to Rs 14343.53 crore in Q4 March 2014 over Q4 March 2013.
JSW Steel's consolidated net profit dropped 53.07% to Rs 451.95 crore on 34.02% rise in total income to Rs 51305.43 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
JSW Steel said that on 3 May 2013, the Bombay High Court sanctioned a Composite Scheme of Amalgamation and Arrangement under sections 391 to 394 of the Companies Act, 1956 amongst JSW Steel, JSW ISPAT Steel, JSW Building Systems, JSW Steel Coated Products and their respective shareholders and creditors with effect from 1 July 2012, being the appointed date. The certified copy of the scheme is filed with the Registrar of Companies (RoC) on 1 June 2013. Accordingly, effect of the scheme is considered in the results for the Q4 and year ended 31 March 2014. Consequent to the merger, the results are not fully comparable with corresponding periods of the previous year.
During the Q4 March 2014, JSW Steel achieved crude steel production (3.15 million tones, 49% growth YoY), the highest ever consolidated gross turnover of Rs 15,242 crore, consolidated exports of 0.87 million tonne and the highest ever consolidated EBIDTA of Rs 2529 crore.
Despite a challenging operating environment marked by muted domestic demand growth, the company achieved 101% of its production and 103% of sales volume guidance for FY14, JSW Steel said.
JSW Steel said that during the financial year ended 31 March 2013, the company has commenced Pellet Plant and Coke Oven Plant at Dolvi and downstream facilities for value addition, which are expected to stabilise and ramp-up during FY 2014-15. With an enriched product-mix, the company expects to sell more volumes in the domestic market.
JSW Steel issued guidance of 6% growth in crude steel production to 12.90 million tonnes in the year ended 31 March 2015 from actual production of 12.17 million tonnes in the year ended 31 March 2014. JSW Steel issued guidance of 5% growth in saleable steel to 12.40 million tonnes in the year ended 31 March 2015 from actual production of steel sales of 11.86 million tonnes in the year ended 31 March 2014.
In terms of outlook, JSW Steel said that world economy is projected to grow at 3.6% in CY 2014 up from 3% in CY 2013 majorly influenced by expansion in output to be led by Advanced Markets with a continued recovery in Europe from 0.2% to 1.6% and US from 1.9% to 2.8% in CY 2013 and CY 2014, respectively. Japan is expected to continue monetary easing to improve inflation and industrial growth. Emerging Markets are projected to exhibit a moderate growth at 4.9% in CY 2014 from 4.7% in CY 2013. China's increasing focus on "Quality" engineered growth is expected to moderate its investment-stimulated growth from 7.7% in CY 2013 to 7 to 7.5%. However, downside risks to growth trajectory arise from ongoing tapering of quantitative easing in the US posing a threat of interest rate hike and reversal of investment flow from Emerging Markets, diverging challenges of inflation between Advanced Markets and Emerging Markets along with rising corporate leverage and elevated'debts in the Advanced Markets.
For India, FY 2014 has proven to be one of the toughest times especially with high inflation, elevated policy rates, depreciating Rupee with high volatility, rising NPAs, declining manufacturing, stagnant investments coupled with a near stall to policy-initiatives. All these have pushed the country into an economic slowdown for the second-year in succession with adverse downside risk, JSW Steel said.
JSW Steel's board of directors at its meeting held on Tuesday, 27 May 2014 has transacted raising of additional long term resources. The Board of Directors has decided to seek an enabling resolution from the shareholders of the company in the ensuing Annual General Meeting of the company with respect to the raising of additional long term financial resources to part finance the company's capital expenditure needs and/or for other general corporate purposes, including the reduction of leverage, as the Board may deem fit and depending on market conditions, through the issue of Non-Convertible Debentures along with warrants and/or convertible securities other than warrants convertible into equity shares, to eligible Qualified Institutional Buyers, in one or more tranches, through a Qualified Institutional Placement not exceeding a sum of Rs 4000 crore in the aggregate; and /or issue of Global Depository Receipts / American Depository Receipts / Foreign Currency Convertible Bonds and/or any other instrument(s) convertible into equity shares in the international capital market, optionally or otherwise, in one or more tranches, not exceeding $350 Million (United States Dollar Three Hundred and Fifty Million only) in the aggregate; and/or issue of non-convertible foreign currency denominated bonds not exceeding $ 2 Billion (United States Dollar Two Billion only) in the aggregate in the international capital market.
JSW Steel's board of directors at its meeting held on Tuesday, 27 May 2014, recommended dividend of Rs 11 per share for the year ended 31 March 2014.
JSW Steel, the flagship company of the JSW Group, is one of the lowest cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, ports, and cement. JSW Steel is engaged in manufacture of flat and long products viz. H R Coils, C R Coils, Galvanised products, Galvalume products, auto grade / white goods grade CRCA Steel, Bars and Rods. JSW Steel is one of the largest producers and exporters of coated flat products in the country with presence in over 100 countries across five continents.
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