JSW Steel, India's second largest steel company, on Wednesday posted a consolidated net profit of Rs. 171.25 crore for the quarter ending on March 31, 2016. During the same time in the previous financial year, it had posted a net profit of Rs. 62.38 crore.
The Sajjan Jindal-led company's revenues fell almost 15 percent to Rs. 10, 697.52 crore in the fourth quarter of FY16, whereas during corresponding quarter in the previous fiscal, the company's revenues clocked Rs. 12, 599.7 crore, the company said in a regulatory filing with the Bombay Stock Exchange.
The JSW stock was trading at Rs. 1,016 at around 10.51 a.m. on Thursday, up 1.25 percent from its previous close.
"Higher-than-expected volumes, lower costs and a few one-offs led to strong EBITDA. The management expects steel volumes to increase 24% in FY2017 to 15 million tons from new capacities," Kotak Institutional Equities said in a note.
JSW Steel said that the company recorded a crude steel production for the fourth quarter at 3.21 million tonnes up 5 percent year-on-year (YoY) as blast furnace at Vijayanagar, Dolvi and Salem works were re-commissioned in February 2016, it said in a statement.
"Despite the impact of shutdowns for a large part for the quarter, the steel company recorded domestic sales volumes growth at 24 percent YoY during the quarter," it added.