Major Indian steelmaker JSW Steel (JSW) has announced its financial and operational results for the first quarter ended June 30 of the financial year 2018-19, posting a net profit of INR 23.39 billion ($340.64 million), compared to a net profit of INR 6.24 billion in the same quarter of the previous financial year. In the June quarter this year, JSW's net sales increased by 25 percent year on year to INR 205.19 billion ($2.98 billion).
During the given quarter, JSW produced 4.11 million mt of crude steel, up five percent, while achieving finished steel sales of 3.83 million mt, rising by nine percent, both on year-on-year basis.
According to JSW’s statement, India witnessed a robust 9.2 percent year-on-year growth in domestic steel demand for the first quarter led by robust government spending on infrastructure and strong consumer demand. Consequently, the company strategically increased domestic sales by 27 percent year on year. Moreover, sales to the strategic automotive segment increased by 57 percent and sales of value-added and special products rose by six percent, both compared to the corresponding period of the previous year.
JSW also stated that steel demand in India in the first quarter grew at a healthy rate; however, imports of steel into the country surged by 15 percent year on year. As imports continue to increase and exports decline, India became a net importer of steel in the June quarter after a gap of over three years. Imports from South Korea and Japan increased by 31 percent from the same quarter of the previous year and constituted 52 percent of total imports into the country. Post the imposition of Section 232 tariffs in the US and the safeguard measures announced by the EU, India has started witnessing diversion of steel imports from steel surplus countries into India, which necessitates the imposition of effective trade remedial measures in a timely manner by the government of India, the company added.