JSW Steel reports sharp decline in net profits

JSW Steel reports sharp decline in net profits

JSW Steel Ltd., the fully integrated steel plant of India's Jindal Group, reported a sharp decrease in net profit for the quarter ended September 30, 2005. The company's net profit during the quarter decreased 20 percent, or Rupees 270 million ($6 million), year on year to Rupees 1.06 billion ($23.44 million). Total income increased 3 percent, or Rupees 440 million ($9.73 million), year on year to Rupee 15 billion ($331.64 million). The company went through a restructuring in April, therefore the figures from this past quarter are not strictly comparable with the figures of the corresponding quarter of the previous year. Yet, the narrowing of the company's profit margins due to lower steel prices is obvious.