JSW Steel Limited - Qtrly Results - Q3 FY 2012 -Q/E Dec,2011 - Net Sales up 36% YoY - NPT UP 32%QoQ BUT DOWN 56%YoY - Due to Raw Material & Exceptional Items

JSW Steel Limited

NSE Symbol        JSWSTEEL

JAW STEELS has declared its Results for the 3^rd quarter of FY 2012 ending Dec,2011.

Net Sales stands at Rs.7859.62 cr in Q3 FY 12 -  up by 3.08% from Q2 FY 12 and up by 36.18% from Q3 FY 11.

Raw Materials   stands at Rs.5749.22 Cr in Q3 FY 12 – up by  4.18% from Q2 FY 12, and up by   47.46% from Q3 FY 11.

Total Expenditure stands at Rs.7068.28 cr for Q3 FY 12 – up by 4.87% from Q2 FY 12 and up by 37.15% from Q3 FY 11.

Profit from Operations stands at Rs.808.20 for Q3 FY 12; down by -9.42% from Q2 FY 12; and up by 23.61% from Q3 FY 11.

Exceptional Items Expense stands at Rs.      500.11 cr in Q3 FY 12; and Rs.512.98 cr in Q2 FY 12.

This has reduced profits very drastically in these 2 quarters.

Profit  before tax amounts to Rs.27.01 Cr in Q3 FY 12; compared to Rs.181.71 cr in Q2 FY 12 (down by -85.14%); and Rs.529.72 cr in Q3 FY 11 (down by   -94.9%).

Tax expense stands at Rs(-)141.23 cr in Q3 FY 11; Rs.54.59 cr in Q2 FY 12; and Rs.147.42 cr in Q3 FY 11.

Net Profit stands at Rs.168.24 cr in Q3 FY 12 – compared to Rs.127.12 cr in Q2 FY 12 (Up by 32.35%); and Rs.382.30 cr in Q3 FY 11 (down by -55.99%).

Basic EPS, on a Face value of Rs.10 stands at Rs.7.18 in Q3 FY 12; Rs.5.33 in Q2 Fyn 12; Rs.25.56 in Q1 FY 12; Rs.36.96 in Q4 FY11; Rs.17.21 in Q3 FY 11.

Raw Material expenses and Exceptional Items expenses in the last 2 quarters have significantly brought down the Profits in the last 2 qtrs.

The company's crude production went up 19% to 1.939 metric tones versus 1.636 metric tones y-o-y as their 10-million tonne Vijaynagar plant in southern Karnataka operated at 90%. The company has tied up iron ore supplies for the plant till May.  Rolled Flat products production has gone up by 11% and rolled long products production has gone up by 31% Yoy.

4^th Quarter Production and sales volumes need to be watched  before assessing the full year performance– in view of the last 2 quarters.

The Market Price of the share is Rs.646.65 – while the  52 week high price  is 1060 and the 52 week low price  is Rs.462.35.

RESULTS TABLE

JSW STEEL	31-Dec-11	30-Sep-11	%DIF1	30-Jun-11	31-Mar-11	31-Dec-10	%DIF2
Net Sales	785962	762506	3.08	706457	703207	577142	36.18
Other Oprtng Income	1686	707	138.47	481	7313	3613	-53.34
Increase in SIT / WIP	-14335	-14325	0.07	-35637	-27103	13131	-209.17
Raw Materials	574922	551864	4.18	499874	482456	389879	47.46
Employees Cost	15023	14627	2.71	17656	13672	12769	17.65
Depreciation	44442	40388	10.04	38789	38269	34636	28.31
Other Expenditure	86776	81436	6.56	77906	76070	64959	33.59
Total Expenditure	706828	673990	4.87	606338	583364	515374	37.15
Profit from Operations	80820	89223	-9.42	100600	127156	65381	23.61
Other Income	76	3684	-97.94	1688	384	789	-90.37
Interest	28184	23438	20.25	19661	15281	13198	113.55
Exceptional Items	50011	51298	-2.51	-	-	-
Profit  before tax	2701	18171	-85.14	82627	112259	52972	-94.9
Tax expense	-14123	5459	-358.7	24795	28993	14742	-195.8
Net Profit	16824	12712	32.35	57832	83266	38230	-55.99
Face Value (In Rs	10	10	0	10	10	10	0
Paid Up Equity	22312	22312	0	22312	22312	22312	0
Basic EPS	7.18	5.33	34.71	25.56	36.96	17.21	-58.28
Public Holding (%)	62.29	62.29	0	62.29	62.29	62.29	0

ANNOUNCEMENT BY THE COMPANY

16-12-2011          Jsw Steel Limited had informed the Exchange regarding the allotment of 1,75,00,000 (One Crore Seventy Five Lakh) warrants on a Preferential basis, to a Promoter Group Entity. JSW Steel Ltd has now informed Exchange that as per the terms of issue of these warrants, upon payment of Exercise Price of Rs. 1,210 per warrant, as reduced by the 25% upfront money paid at the time of allotment of warrants, the warrant holder was entitled to apply for and obtain allotment of One Equity Share of par value of Rs. 10 each against each warrant held. The last date for the exercise of the conversion right of the Warrant holder was December 15, 2011 (within 18 months from the date of their allotment). Further the Company has informed that, the Warrant Holder (Promoter Group Entity) has not exercised its option to convert the aforesaid 1,75,00,000 warrants allotted to it, into Equity shares of the Company. The amount of Rs. 529,37,50,000 being the initial 25% of the total consideration of Rs. 2117,50,00,000/- received by the Company has been forfeited.

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