JSW Steel posts Rs 1,598-crore profit in FY10

MUMBAI: JSW Steel, India’s third-biggest steelmaker, on Monday said its board has agreed to allot warrants to promoters to reduce debts and part finance capex plans. The issue of the 1.75 crore warrants convertible into equity shares, will raise about Rs 2,100 crore, according to the pricing based on Sebi’s norms, said people connected with the development. The warrants will be convertible into equity shares within 18 months and will raise the promoter holding to 49.7% from the current 45%, said a JSW statement. The company said it has identified coking coal assets in the US, along with railway load out and barge facility. The company board has approved the acquisition of these assets which have resources totalling 123 million tonne. “While one of these mines is operating, the rest can be made operational over 24 months. The business plan envisages to commence production of coking coal of 1 million tonne in the first year, to be ramped up to 3 million tonne in the third year,” said the JSW statement. The company said increased demand from construction and automobile companies has helped it post a net profit of Rs 611 crore for the fourth quarter, while the sales stood at Rs 5,844 crore. For the full year, JSW Steel’s net profit stood at Rs 1,598 crore, with a revenue totalled Rs 20,211 crore. JSW Steel said its fourth quarter performance was aided by higher volumes and firm prices. The company’s crude steel volumes grew 66%, while saleable steel was up 43%, compared to the same period last year. The board has proposed a dividend of Rs 9.50 per share for the year ended March 31, 2010.