JSW Steel Q2 net up 48% at Rs 511cr

Sajjan Jindal-promoted JSW Steel has posted its highest ever net profit of Rs 511.23 crore in the quarter ended September 30, 2007, up 48% over the corresponding period last fiscal.

Total income increased by 18.76% to Rs 2,218.77 crore during the same period.

The company expects steel prices to remain firm or even increase in the wake of rising global demand.

The appreciating rupee coupled with a fall in international steel prices led to an adjustment of prices downwards in July and August, however steel prices have started moving north in both international and domestic markets from August.

The JSW board today also approved merger of Southern Iron and Steel Company (Siscol) with the company.

According to the scheme, 1 equity share of JSW Steel will be issued to Siscol shareholders for every 22 Siscol shares held and 1 redeemable preference share of JSW will be issued to the preference shareholders of Siscol for every one redeemable preference share held by them in Siscol.

The conversion price for outstanding convertible instruments in Siscol will be adjusted in the proportion of the swap ratio.