JSW Steel, the country's second-largest private steel company, missed profit estimates for the third quarter. The company reported a consolidated net profit of Rs 187 crore for October-December, almost 88 percent lower than the Rs 1,603 crore it reported in the previous year.
Seshagiri Rao, Joint MD & Group CFO at JSW Steel, says the company's performance is reasonably well and the prices are sustainable.
"Prices will sustain. There is an upside from here on for increase in prices. The price increase which has happened from November to January, that impact will come for the full quarter. So, I think this restocking cycle will continue for some more time," he said.
"EBITDA per tonne, we don't give the guidance but what I can explain as far as the last quarter is concerned, there is Rs 6,620 per tonne on a standalone basis. This also includes Rs 250 crore assignment fee which we have received on the assignment of some contract. So, that amount if we can adjust, it will come down by approximately Rs 600 per tonne. But at the same time on a consolidated basis the inventory losses in the last quarter was around Rs 300 crore, so that will translate to Rs 740 per tonne which may not be there in this quarter. So, Rs 740 plus and Rs 600 minus, then net-net there is an increase of more than Rs 100 per tonne in the EBITDA for which we have reported the number of Rs 6,620," Rao said.