India`s Jindal Steel Q3 profit jumps as lower costs offset weak sales
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Indian steelmaker Jindal Steel and Power reported an almost four-fold rise in third-quarter profit on Wednesday, as easing costs offset a fall in sales.
The company, which has steel, mining and infrastructure businesses, said its consolidated net profit after tax increased to 19.28 billion rupees ($232 million) in the three months to Dec. 31, from 5.18 billion rupees a year ago.
The robust performance was supported by lower raw material costs as benefits from captive thermal coal mines materialised, it said in a statement. Its sales and services revenue fell 6.3% to 137.56 billion rupees.
Jindal Steel's commissioned coal mines helped the company meet its thermal coal needs, offsetting the brunt of higher costs of key steelmaking raw material - coking coal in the quarter, analysts had said.
Input costs fell 3% to 48.06 billion rupees in the December quarter.
Earlier this month, larger rival JSW Steel reported a five-fold rise in December-quarter profit on strong domestic demand.
Shares of Jindal Steel had settled 1.5% higher ahead of results.
