JSL Q2 net up 3 pc at Rs 64 cr

NEW DELHI: JSL Stainless on Friday reported a 3 per cent jump in its profit at Rs 64.66 crore for the quarter ended September 30, 2010, in comparison to the year-ago period as the input cost pressure partially offset gains from rising demand for the alloy.

"The stainless steel demand continues to grow both in domestic and in the Asian markets. ...(but) ...high volatility in the raw material prices especially nickel (hit company's margins)," the country's largest stainless steel maker said in a statement here.

The company had posted a net profit of Rs 62.75 crore in the corresponding quarter of the previous fiscal.

With the rising demand for its products, the company saw its sales rising by nearly 31 per cent in the reporting quarter at Rs 1,736.28 crore. The company had net sales of Rs 1328.12 crore in the year-ago period.

"The demand in the last quarter was to a large extent effected due to uncertainties in European economies which resulted in volatility in the raw material prices and hence the sentiments," the company added.

Going forward, JSL Stainless said the domestic demand is likely to be robust especially from the infrastructure space.