JSW Steel, India’s third-largest steel company, said on Monday its standalone net profit for the first quarter grew 55% to Rs 340 crore, helped by higher volumes and lower production costs. The Sajjan Jindal-controlled company, however, said its consolidated net profit for the April-June, 2009 period fell 6.4% due to a slump in demand in the US market. The company’s 
total sales for the quarter rose 6% to Rs 3,900 crore.JSW has seen a 41% growth in crude steel production and a 62% rise in saleable steel, compared with the previous year.“We have reduced our production costs through various measures taken earlier and also because we were able to reduce energy consumption,” managing director Sajjan Jindal told ET NOW.The Mumbai-based steelmaker has cut its production cost by 24% to $315 per tonne and plans to lower it further to $275 a tonne in the next fiscal. The production cost of Tata Steel, India’s largest steel company, is the lowest in India and the second-lowest in the world. Steelmakers are beginning to see a pick-up in demand due to a revival in the economy. Prices of steel had almost halved from record levels seen in June last year. This prompted most steelmakers to cut production and to prune costs. Prices of hot rolled steel coils, the base grade category, now stands at Rs 26,000 per tonne, compared with Rs 40,000 per tonne last year.
total sales for the quarter rose 6% to Rs 3,900 crore.JSW has seen a 41% growth in crude steel production and a 62% rise in saleable steel, compared with the previous year.“We have reduced our production costs through various measures taken earlier and also because we were able to reduce energy consumption,” managing director Sajjan Jindal told ET NOW.The Mumbai-based steelmaker has cut its production cost by 24% to $315 per tonne and plans to lower it further to $275 a tonne in the next fiscal. The production cost of Tata Steel, India’s largest steel company, is the lowest in India and the second-lowest in the world. Steelmakers are beginning to see a pick-up in demand due to a revival in the economy. Prices of steel had almost halved from record levels seen in June last year. This prompted most steelmakers to cut production and to prune costs. Prices of hot rolled steel coils, the base grade category, now stands at Rs 26,000 per tonne, compared with Rs 40,000 per tonne last year.For Further Details Visit At:economictimes.indiatimes.com/News-by-Industry/JSW-Steel-net-rises-55-to-Rs-340-cr/articleshow/4800777.cms
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