JSW Steel Q3FY08 Results

JSW Steel Ltd has announced the following Unaudited results for the quarter ended December 31, 2007:

The Company has posted a net profit after tax of Rs 3281.80 million for the quarter ended December 31, 2007 as compared to Rs 3621.50 million for the quarter ended December 31, 2006. Total Income has increased from Rs 23173.40 million for the quarter ended December 31, 2006 to Rs 25981.90 million for the quarter ended December 31, 2007.

The Consolidated results are as follows:

The Group has posted a net profit after tax after Share of profit of Minority and Share of Profits of Associates of Rs 2700.60 million for the quarter ended December 31, 2007. Total Income is Rs 28780.80 million for the quarter ended December 31, 2007.

JSW Steel acquires concessions in green field area

JSW Steel Ltd has announced acquisition of eight concessions in a green field area through its Netherlands based wholly owned subsidiary for exploration and exploitation of magnetite iron ore deposits in the region of Atacama in the North of Chile. These exploration mining concessions extend over an area of approximately 1200 hectares.

The Company took over these concessions for a total consideration of US $ 52 million.

The Company has been actively pursuing to augment captive sources of iron ore and coal both in India and overseas for its Indian steel making operations.

Mr. Sajjan Jindal commenting on this acquisition said "these mines are expected to have good quality magnetite iron ore deposits located near pacific coast facilitating shipment of ore at competitive cost. It acts as a natural hedge against high cost iron ore procured from third parties in India once these mines are operationalised".

He further added that he is negotiating to forge a joint venture to develop various iron ore mining projects in South America which he is hopeful of concluding in the near future.

JSW Steel equity & preference shareholders to approve Scheme of Amalgamation

JSW Steel Ltd has informed that pursuant to the Order made by the High Court of Judicature at Bombay, separate meeting of the equity shareholders & preference shareholders of the Company will be held on December 28, 2007, for the purpose of considering and if though fit, approving with or without modification(s), the arrangement embodied in the Scheme of Amalgamation of Southern Iron & Steel Company Ltd with the Company.

Further the Company has informed that, an Extra Ordinary General Meeting (EGM) of the equity shareholders of the Company will be held on December 28, 2007, or soon after the Court Convened Meeting of the equity shareholders, whichever is later.

JSW Steel

JSW Steel Ltd has announced that the Company has posted a growth in Crude Steel, HR Coils, HR Plates and Pre-painted Galvanised Coils of 27%, 7%, 33% and 109% respectively in October 2007.

The breakup of product wise production is as below:

Product: Crude Steel
Production Lakh tonnes (October 07): 2.86
Growth Over October '06 (%): 27%

Product: HR Coils
Production Lakh tonnes (October 07): 2.34
Growth Over October'06 (%): 7%

Product: HR Plates
Production Lakh tonnes (October 07): 0.18
Growth Over October'06 (%): 33%

Product: Galvanised
Production Lakh tonnes (October 07): 0.69
Growth Over July '06 (%): Nil

Product: Pre-painted GI
Production Lakh tonnes (October 07): 0.08
Growth Over October'06 (%): 109%

The Company has also registered a volume growth of 11% in Crude steel, 3% in HR Coils and 8% in GI sequentially.

JSW Steel - Business Outlook

JSW Steel Ltd has announced the following Outlook:

The global crude steel production continues to grow and stood at + 7.3% during the first 9 month period in 2007, mainly led by high growth in China & Asia. Chinese exports are higher in first nine months at 55 Mn MT, but the efforts of Chinese Govt. to restrict steel exports have slowed down export of steel products from China. The growth in consumption in emerging economies continues to be strong.

Indian Steel Demand growth is fuelled by strong wave of economic development. Indian economy has shown robust growth in the current financial year backed by a growth of +11% in the industrial production. Lower inflation reported recently is expected to result in lower interest rate regime, which will spur growth in Automobile and Retail sector, a big positive for steel industry. There is increase in requirement for Steel products as a result of strong demand momentum driven by massive infrastructure growth and rising consumption on increase in urbanization.

Steel Industry is in a cost push environment due to rise in prices of iron ore, coal, coke and rising freight rates on jump of crude oil prices which is expected to keep the steel product prices high.

The appreciating Rupee against US Dollar coupled with a fall in international steel prices led to an adjustment of the prices downwards in domestic market in July & August in Q2, however, steel prices started moving north, both in international as well as domestic markets starting after August 2007. In this scenario & also in view of rising global demand, the steel prices are expected to remain firm & may continue to rise further.

ABB wins order from JSW

ABB Ltd has announced that the Company has received orders worth around Rupees 512 crores (5120 MINR) from JSW and their associated Companies, to provide turnkey power and automation solutions for their steel and power plant projects.

This includes Electrical Balance of Plant (EBoP) solutions for their 8x135 MW power generation facility in Rajasthan and a 300 MW power plant being set up in Bellary, Karnataka. Other systems and equipment include transformers, substations, electronic drives as well as a range of medium and low voltage switchgear and electricals. The projects are expected to be commissioned by 2009.

"We have a long-standing relationship with the JSW Group and have worked with them on several steel projects. We are now proud to partner then in their power projects", said Biplab Majumdar, Country Manager and Managing Director ABB India, commenting on the orders. "ABB's power and automation technologies will go a long way in enabling efficiency and productivity at JSW’s world-class facilities", he added.

ABB has leading edge technologies and a high level of domain competence and experience to serve power generation needs. The Electrical Balance of Plant (EBoP) and associated solutions will help to ensure reliable power supply to the plant.

JSW is among India's leading players in the metals sector and is part of the fast growing US$ 6 billion O.P. Jindal Group with interests in mining, carbon steel, power and oxygen. JSW is in the process of enhancing its steel capacity from 3.8 to 10 mpa (million tonnes per annum) by 2010, supported by a build up of its power generation capability.

JSW Steel Ltd

JSW Steel Ltd has announced that the Company continued to post increase in volume of production quarter after quarter following the commissioning of capacity enhancement to 3.8 MTPA in November 2006. While the growth in Crude steel production was 21% over the corresponding quarter of last year, the HR Coils, HR Plates and pre-painted Galvanised Coils have shown a growth of 13%, 43% and 106% respectively. In fact, the Hot Strip Mill has produced 1.363 million tons in the first six months of the current financial year showing a capacity utilization of 109%. The break up of product wise production is as below:

Product: Crude Steel
Production Lakh tonnes (Q2 2007-08): 7.83
Growth Over Q2 2006-07 (%): 21%

Product: HR Coils
Production Lakh tonnes (Q2 2007-08): 6.85
Growth Over Q2 2006-07 (%): 13%

Product: HR Plates
Production Lakh tonnes (Q2 2007-08): 0.64
Growth Over Q2 2006-07 (%): 43%

Product: Galvanised
Production Lakh tonnes (Q2 2007-08): 1.99
Growth Over Q2 2006-07 (%): -

Product: Pre-painted GI
Production Lakh tonnes (Q2 2007-08): 0.25
Growth Over Q2 2006-07 (%): 106%

The Company has also registered a volume growth 11% in Crude Steel and 7% in HR Coils sequentially.