Beating expectations, JSW Steel delivered a strong performance in the June 2016 quarter. Net profit multiplied several-fold to ₹1,109 crore from ₹21 crore in the year ago period. Operating profit rose 92 per cent (year-on-year) to ₹3,269 crore during the recent quarter.

A surge in the volume of steel exports (39 per cent Y-o-Y) and the recent recovery in global steel prices helped. The company’s consolidated revenue rose 2 per cent to ₹12,886 crore in the June 2016 quarter. This is significant, given that it was preceded by six successive quarters of falling (Y-o-Y) revenue. Also, softer raw material prices lowered cost and bumped up profit. JSW Steel had reported five successive quarters of deteriorating profit (both operating and net) until the December 2015 quarter, but had started reviving in the March quarter.

But there may not be a repeat show in the September quarter. An expected sluggish demand should keep steel prices under pressure. Raw material prices too are likely to be higher.

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