Jan. 28 (Bloomberg) -- JSW Steel Ltd., India’s third-biggest producer, posted an 18 percent drop in third-quarter profit as costs surged because of an increase in depreciation and power expenses.
Net income, excluding unit JSW Ispat Steel Ltd., was 1.37 billion rupees ($25.4 million) in the three months ended Dec. 31, compared with 1.68 billion rupees a year earlier, the Mumbai-based company said today in a statement. The median estimate of 8 analysts surveyed by Bloomberg was for a profit of 2.46 billion rupees. Sales climbed 5 percent to 82.7 billion rupees.
Total costs at JSW, in which Japan’s second-biggest steelmaker JFE Holdings Inc. holds a 16 percent stake, rose 5.8 percent to 74.8 billion rupees in the quarter, according to the statement. Finance costs jumped 39 percent to 4.55 billion rupees, while power and fuel costs increased 12 percent to 4.93 billion rupees. Depreciation and amortization expenses also gained 12 percent to 4.98 billion rupees.
JSW shares rose 0.7 percent to 870.70 rupees at the close in Mumbai. The stock has rallied 32 percent in the past year, compared with a 17 percent advance in the benchmark BSE India Sensitive Index.
The company benefited from lower coking coal charges, which fell more than 40 percent last quarter. Production at the company’s biggest factory in Karnataka state rose 8 percent.
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