May 23 (Bloomberg) -- JSW Steel Ltd., India’s third-biggest producer of the alloy, reported a 62 percent drop in fourth-quarter profit as prices in the local market fell and depreciation expenses climbed.
Group net income, including unit JSW Ispat Ltd., fell to 2.96 billion rupees ($53 million) in the three months ended March 31 from 7.70 billion rupees a year earlier, the Mumbai-based company said today. The median profit estimate of 26 analysts compiled by Bloomberg was 3.78 billion rupees. Sales dropped 3 percent to 98.5 billion rupees.
Hot-rolled steel coil, a benchmark product used in automobiles and buildings, declined 10 percent in India according to Bloomberg calculations based on data from Metal Bulletin.
JSW Steel shares rose 0.5 percent to 687.90 rupees at the close of trading in Mumbai. The stock has fallen 15 percent this year, compared with a 1.3 percent gain in the key Sensitive Index.
Depreciation and amortization expenses rose 13 percent to 5.95 billion rupees, according to the statement. Operating income from sources other than JSW Steel’s main business fell to 466.1 million rupees from 2.08 billion rupees in the year earlier period. The drop in profit was partially countered by a fall in costs of coking coal, a key raw material used in making steel.
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