MUMBAI, India Indias largest steel company, JSW Steel Ltd., recorded a net loss of $36.57 million for the three months ended June 30 in contrast to net income of $44.37 million in the same period last year.
The company attributed the fiscal first-quarter loss to unusual depreciation in the value of the Indian rupee against the U.S. dollar. "This loss is considered to be exceptional in nature, as there was a net translation loss of $140.6 million on restatement of foreign currency monetary items at the close of the quarter," JSW Steel said.
JSW Steel posted a 33.6-percent increase in crude steel production to 2.86 million tonnes from 2.14 million tonnes a year ago.
"Indian steel demand in (the fiscal) first quarter remained flat at 0.3 percent year-on-year growth as overall economic activities like industrial production was weak," chief financial officer Seshagiri Rao said. "However, a good monsoon can drive consumption which will, in turn, support a revival of steel demand growth in India."
JSW recorded a 3-percent increase in gross turnover to $1.67 billion and a 2-percent increase in net sales to $1.51 billion in its fiscal first quarter compared with the same period last year.
Commenting on JSWs international operations, Rao said that the companys Chilean iron ore mines produced 210,000 tonnes and shipped 150,000 tonnes of iron ore concentrate during the quarter, generating operating earnings before interest, tax, depreciation and amortization (Ebitda) of $860,000. JSW Steels U.S. coal mines posted an Ebitda loss of $350,000.
A version of this article was first published by AMM sister publciation Steel First.