JSW Steel , which operates a 10 million tonne steel plant at Karnataka is planning to hike steel product prices by 3-3.5 percent in current month following rupee depreciation, hike in international steel and iron ore prices, Seshagiri Rao, joint MD & Group CFO, JSW Steel told CNBC-TV18.
Market was disappointed with the increase in the company’s debt level at the end of June quarter. It reported net debt of Rs 29,200 crore. Rao explained that expenses and rupee depreciation had pushed up overall debt. JSW Steel’s foreign currency debt currently stands at Rs 12,000 crore and rapidly depreciating rupee, which today hit lifetime low of 61.59 against dollar is going to create further trouble for the company.
The company continues to face iron ore scarcity at its Vijayanagar plant in Karnataka. “Only 12 mines are operating, there is no adequate supply of iron ore to meet the industry requirement. We are trying to bridge that gap by procuring part of the quantity from outside Karnataka, still not able to improve capacity utilization to 100 percent,” Rao said. It plans to procure 2.5-3 million tonne ore from outside Karnataka.
JSW Steel hopes to improve profitability in the last quarter of current financial as it will commission a pellet and coke oven battery plant at Dolvi unit in November and December respectively.
Market was disappointed with the increase in the company’s debt level at the end of June quarter. It reported net debt of Rs 29,200 crore. Rao explained that expenses and rupee depreciation had pushed up overall debt. JSW Steel’s foreign currency debt currently stands at Rs 12,000 crore and rapidly depreciating rupee, which today hit lifetime low of 61.59 against dollar is going to create further trouble for the company.
The company continues to face iron ore scarcity at its Vijayanagar plant in Karnataka. “Only 12 mines are operating, there is no adequate supply of iron ore to meet the industry requirement. We are trying to bridge that gap by procuring part of the quantity from outside Karnataka, still not able to improve capacity utilization to 100 percent,” Rao said. It plans to procure 2.5-3 million tonne ore from outside Karnataka.
JSW Steel hopes to improve profitability in the last quarter of current financial as it will commission a pellet and coke oven battery plant at Dolvi unit in November and December respectively.
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