JSW Steel net down 26%

Higher cost of raw materials saw JSW Steel's net profit decline by 25.7% to Rs382.3 crore during the third quarter of the current financial year even as increased demand for the commodity in the domestic market saw its revenues touch new highs.

The firm's net sales went up by 26% to Rs5,771.4 crore in the October-December 2010

quarter over the same period in the previous year, as its production in the Vijaynagar Steel Plant increased by 11% to 1.6 million tonnes.

Higher cost of raw materials especially coal, which saw a 60% increase in price during the quarter, saw its expenses on raw material and fuel go up by 38% to Rs3,898.8 crore.

JSW relies on imports for its entire coking coal requirements. The firm's shares were down 5% to Rs965.6 per share on Thursday at the Bombay Stock Exchange.