Sajjan Jindal-led JSW Steel today reported a growth of 29.88% in its consolidated net profit at Rs 793.63 crore for the quarter ended March 31, 2011.
The company had posted a net profit of Rs 611.02 crore during the same period last fiscal.
The net sales of the company stood at Rs 7,209.35 crore, up 32.49% during the January-March quarter vis-a-vis Rs 5,441.30 crore in the corresponding period of 2009-2010, it said in a filing to the Bombay Stock Exchange.
During the quarter, consolidated revenues from steel segment rose by 33.26% to Rs 7,423.49, while its power business reported a growth of over 11% at Rs 289.36 crore.
However, for the full year 2010-11 the company reported a meagre growth of 9.79% in its consolidated net profit at Rs 1,753.98 crore as compared to Rs 1,597.55 crore it had reported in 2009-10.
In a separate statement, the company said it has decided to increase the capacity of its Vijaynagar plant by 2 million tonne per annum (MTPA) to 12 MTPA at an estimated cost of Rs 2,695 crore.
"The proposed project cost is about Rs 2,695 crore and is to be financed out of cash accruals of Rs 945 crore and the balance by debt," the statement said.
Besides this, the company produced 1.64 million tonne of steel during the January-March quarter, while its annual steel production was up 7% at 6.42 million tonne, the statement added.
Moreover, the company commissioned its sinter plant, 2 blocks out of 4 blocks of coke oven and 300 MW captive power plant at its Vijaynagar unit during the January-March quarter as part of its 3.2 MTPA expansion project, the statement further said.
The company, which is aiming to become largest domestic steel producer with 14 MTPA capacity post expansion, said that balance units along with a blast furnace will be commissioned during the ongoing quarter.
Talking about the Ispat Industries, in which JSW Steel acquired majority stake in January, the company said it has "turned into profit making company" within a quarter and has reported a net profit of Rs 70 crore.
It further stated that Ispat is now running at 88% capacity utilisation and had produced 0.73 million tonne of HR-coil during the January-March quarter.
JSW Steel currently holds 49.30% in Ispat Industries, the statement said.
In its guidance for the ongoing financial year, the company said it has targeted to increase its production by 48% to 9 million tonne of steel in FY11.
Scrips of the company today closed in the red at Rs 922.15 a piece, down 1.41% on the Bombay Stock Exchange.
