JSW Steel Q1 net up 85%

JSW Steel today reported a 85% increase in net profit at Rs 200.36 crore for the first quarter ended June 30, 2005 as against Rs 108.07 crore in Q1FY05.

According to a release issued by the company to the BSE today, total income increased to Rs 1,541.27 crore in Q1FY06 from Rs 1,285.78 crore in Q1FY05.

Giving a business outlook, another release issued by the company to the BSE said the up tick in prices of scrap DRI and billets signal the arrest of further fall in prices of steel products.

"The company is likely to maintain profitability even at current prices due to benefits that may accrue on account of commissioning of the colour coated line in Q2, second power plant of JSW Power in Q3 and commissioning of expansion projects by March 2006," the release added.

The cold runs of the colour coating line (one lakh tonne capacity) started in July 2005, and is expected to be operational during the second quarter of the current fiscal. "The expansion projects to increase capacity of the steel plant from 2.5 million tonne per annum (MTPA) to 3.8 MTPA and pellet plant capacity from 4.2 MTPA to 5 MTPA are progressing satisfactorily and are expected to be on stream as scheduled. The company has also finalised critical long delivery contracts for its 1 MTPA cold rolling mill complex," the release said.