JSW Steel has reported a 186 per cent jump in net profit and a 16 per cent growth in revenue in the fourth quarter, backed by strong margins of the alloy across the globe.
"We have chose to expand our capacity from 18 mt (million tonne) to 24.7 mt, which includes addition of one mt at Vijaynagar and 0.67 mt at Dolvi unit, and also expand our downstream projects by 2020", he said.
Consolidated total revenue increased 2.34 per cent to Rs 32,132.30 crore in Q4FY18 over Rs 35,304.89 crore in Q4FY17.
The Indian steelmaker on Wednesday reported an exceptional gain of 113.76 billion rupees in the quarter to the end of March, which included a non-cash gain of 140.77 billion rupees relating to the restructuring of its British pension scheme.
JSW Steel, part of the $12 billion JSW Group, today announced it will invest Rs 39,715 crore over the next three years in significantly ramping up capacity, including two power plants, pellet project and coke over plants.
The gain in profits was despite lower production the company had witnessed of 6.26 million tonne (mt) during Q4 as compared to 6.40 mt a year ago. Net debt declined to Rs 69,215 crore.
The private steel giant hopes that the 17 per cent growth in the automobile industry, 14 per cent in the appliances industry and infrastructure and housing sector growth will create huge demand for domestic steel players. ETNow poll had predicted a net profit of Rs 2,323 crore.
"We also successfully completed a $2bn Rights Issue, one of the largest equity issuance in India", he said.The shares of the company closed at Rs 622.05 apiece on the BSE, down 0.32% from the previous close.