JSW Steel Turns to Loss After One-Time Charge on Dollar DebtAbhishek Shanker and Rajesh Kumar Singh
JSW Steel Ltd., India’s third-biggest producer, swung to a first-quarter loss after booking a one-time charge on dollar-denominated debt.
Group loss was 3.82 billion rupees ($63 million) for the three months ended June 30, compared with a profit of 496.5 million rupees a year earlier, the Mumbai-based company said today in a statement. The median loss of nine analyst estimates compiled by Bloomberg was 3.25 billion rupees. Sales rose 2.4 percent to 101.4 billion rupees.
JSW has been hampered by a shortage of iron ore, the key steelmaking ingredient, at its biggest plant in Karnataka, where a mining ban was revoked after more than a year in September. A foreign-exchange loss of 8.62 billion rupees, a spurt in power and fuel expenses and lower steel prices overwhelmed an increase in steel sales, which rose 21 percent from a year ago to 2.55 million metric tons.
The shares rose 6.2 percent to 565.90 rupees at the close of trading in Mumbai.
JSW Steel forecast sales of 11.55 million tons in the year to March 31, a growth of 9 percent, while the nation’s consumption is expected to grow 3.5 percent in the year, Jayant Acharya, JSW’s marketing director, said today in Mumbai.