JSW steel profit increases on currency appreciation and low coking coal prices

JSW Steel reports a Net profit of Rs 822 crores for the second quarter of FY 2012-13 up by 547% over the corresponding quarter of previous year on the back of –

·         Rupee appreciation

Due to 6.4% Rupees appreciation against US Dollar in Q 2 of FY 12-13, leads to boost in the company’s earnings by a foreign-exchange gain of Rs.424 crore as compared to the loss of Rs. 484 crore in the same quarter of last year.

·         Fall in cooking coal Prices

Fall in the quarterly contract prices of coal by 25 % to $225 a ton, thus makes JSW steel as one of the major beneficiaries of the falling prices.