India's JSW Steel says Q1 profit nearly triples on demand surge

BENGALURU, July 21 (Reuters) - Indias JSW Steel Ltd (JSTL.NS) reported a first-quarter profit on Friday that nearly tripled, helped by higher sales on the back of a pickup in infrastructure activity.

Consolidated net profit climbed to 24.28 billion Indian rupees ($296 million) in the quarter ended June 30 from 8.39 billion rupees a year earlier, when the results were impacted by a tax on steel exports.

While overall steel sales jumped 27% from a year ago, JSW Steel said it also reported increased price realisations due to higher export prices.

Investment activity is picking up as reflected in the healthy expansion in steel and cement consumption, the company said in a statement, adding that Indias finished steel consumption rose 10.2%, while crude steel production grew 8.4%, year-on-year.

JSW Steel also said operating costs for its Indian operations were lower year-on-year due to lower coal, power and fuel costs.

Revenue from operations for the countrys largest steelmaker by capacity rose 10.8% to 422.13 billion rupees.

The export tax was scrapped in November after complaints from miners and steelmakers.

Still, the companys profit dropped sequentially by 25% in the June quarter due to lower sales volumes and the higher cost of iron ore, one of the raw metals used for making steel.

Exports also were impacted by delayed loading due to a cyclone on Indias western coast towards the end of the quarter, JSW Steel added.

The steel benchmark on the Shanghai Futures Exchange fell from last years levels, with rebar dropping nearly 32%.

JSW Steel projected crude steel production at 26.34 million tonnes (MT) and sales at 25 MT for fiscal 2024. The company also said its planned capital expenditure for fiscal 2024 was 188 billion rupees, up 25% from the previous year.

($1 = 82.0250 Indian rupees)

Reporting by Sethuraman NR in Bengaluru; Editing by Janane Venkatraman

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