Mumbai: JSW Steel Ltd on Wednesday reported a 174% jump in its consolidated net profit due to lower expenses on account of a drop in material costs.
JSW Steel reported a net profit of Rs.171.25 crore for the three months ended March 2016 compared with Rs.62.38 crore in the year-ago period.
Net sales fell 15.3% to Rs.10,471.21 crore from Rs.12,364.36 crore.
A Bloomberg poll of 17 analysts had forecast a net loss ofRs.141.5 crore for the quarter. 19 analysts had estimated net sales at Rs.10,360.1 crore.
For fiscal year 2015-16, the company reported a net loss ofRs.741.95 crore and net sales of Rs.41,217.30 crore.
Total costs fell 18.18% to Rs.9,666.72 crore from Rs.11,815.33 crore a year ago.
Finance cost fell 2.9% to Rs.833.46 crore.
The board has recommended a dividend of Rs.7.50 per share. The board also approved raising Rs.3,000 crore via debentures. The funds will be used to replace rupee bonds and to meet working capital requirements and capital expenditure, the company said in a notice to BSE.
On Wednesday, Shares of JSW Steel closed at Rs.1,310.35 apiece on the BSE, up 1.45% from the previous close. India’s benchmark index Sensex fell 0.27% to close at 25,704.61 points.