JSW Steel Q3 consolidated net loss widens to Rs 74 cr

JSW Steel's consolidated net loss widened to Rs 74 crore for the quarter ended December 31, 2012 mainly on account of poor performance by associate firm JSW Ispat and Rs 268-crore hit due to exchange fluctuation.

The company had recorded Rs 48 crore net loss after tax and after share of profits of minority and associates in the corresponding period a year ago, it said.

"The consolidated loss of Rs 74 crore for the quarter was primarily due to losses reported by associate company JSW Ispat Steel Ltd," the company said in a statement.

The net loss incurred by JSW Ispat during the quarter stood at Rs 131 crore.

"Net loss (for JSW Ispat) was Rs 131 crore after considering forex loss of Rs 83 crore on restatement of foreign currency monetary items which was considered by the company as an exceptional item," the statement said.

Due to the significant movement in hte value of the rupee against US dollar, the net foreign exchange gain/loss has been considered by the company as an exceptional loss, it added.

The forex loss during the quarter stood at Rs 268 crore. The company reported a five per cent jump in net sales to Rs 8,866 crore during the October-December quarter against the previous the corresponding quarter in the previous fiscal.

It had reported a net sales of Rs 8,405 crore during the third quarter in 2011-12.

Total expenses of the company during the quarter under review stood at Rs 8,119 crore as against Rs 7,602 crore in the year-ago period.

"The company's consolidated net total debt gearing stood at 1.15 as against 1.04 as on September 30, 2012," it said.

Shares of the company closed at Rs 806.20 a scrip, down 0.67 per cent from the previous close on the BSE. Meanwhile, the company said it has reported a drop of 11 per cent in its crude steel production at 7.16 lakh tonnes in January and attributed the decline to iron ore shortage.

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