Get Latest Quote and Company Info Steel majors take a hit in Q3 as demand dips, costs rise
Mumbai, Jan. 28 Slackening demand for steel due to the economic slowdown and a sharp rise in prices of raw materials, especially coal, have made a major dent on the bottomlines of Indian steel majors.
While Tata Steel, the world’s sixth largest steel maker, on Wednesday reported a nearly 56 per cent dip in its third quarter net profit, JSW Steel posted a loss during the quarter.
On Tuesday, Steel Authority of India Ltd also reported a 56 per cent drop in its quarterly net profit at Rs 843 crore.
Tata Steel clocked a net profit of Rs 466.24 crore during the quarter, against Rs 1,068.58 crore in the corresponding quarter of last fiscal.
JSW Steel, on the other hand, reported a loss of Rs 128 crore for the quarter against a profit of Rs 328 crore in the year-ago quarter. JSW Steel said despite the intense measures to trim costs, control inventory and sharpen focus on the rural markets for value-added products, its sales realisation fell 50 per cent compared to the peak levels.
http://www.thehindubusinessline.com/2009/01/29/stories/2009012951930100.htm