JSW Steel Ltd, India's No.3 steelmaker, posted a quarterly net profit as higher raw material costs due to shortage of iron ore supplies, and foreign exchange due to weak currency.
The steelmaker blamed the lower profits on shortage of ore supplies and said profits were also dragged down after exceptional charges, including a 2.7 billion-rupee foreign exchange loss due to a weak rupee, and another 600 million rupees write-down on its investment in a U.S. plate mill.
Production at JSW Steel's 10-million-tonne Vijayanagar plant in the southern state of Karnataka has been affected since August 2011 after India's top court put a ban on mining in the state due to illegalities in some mines.
JSW, which buys its entire iron ore requirement locally, has been forced to pay higher prices for the key raw material at e-auctions sanctioned by India's top court.
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