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JSW Steel aims 10% growth in FY14

JSW Steel aims 10% growth in FY14
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Sajjan Jindal, Chairman and Managing Director of JSW Steel said the firm aims to achieve 9-10 per cent growth in volume and sales during 2013-14.

He said this while releasing the earnings results for March 2013 quarter and for the full year 2012-13.

During 2012-13, the firm produced 8.52 mn t of steel, with average capacity utilisation of 80 per cent. The company had set a target of selling 9 mn t, but managed only 8.87 mn t.

Seshagiri Rao, Joint Managing Director and group chief financial officer, said despite non-availability of iron ore, the firm managed to meet targets. There is no reason why 10 per cent growth is not achievable in 2013-14, he said.

The consolidated net profit of the firm declined 62 per cent to Rs 296 crore during January-March 2013 from Rs 770 crore in year-ago period.

High interest and depreciation cost owing to the 3-million-tonne (mn t) expansion project commissioned recently reduced the profit of the firm. The project hasnÂ’t started operations yet owing to non-availability of iron ore.

While there was a 2 percent fall in its gross sales to Rs 10,675 crore, its operating earnings before interest, tax, depreciation and amortisation (Ebitda) contracted 8 per cent — from Rs 1,887 crore in the year-ago period to Rs 1,733 crore.

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