The Company which has suffered a consolidated net loss as a result of a share of loss on non-controlling interest and share of loss of Associates- joint ventures has reported a higher income from operation, securing a net profit of Rs 730 Crores in the December quarter. The Company is focusing to enrich its product mix and also increasing the value- added and special product sales.
Moody’s Investor Service, a rating agency said the Company is expected to gain inflow in cash as a result of the completion of the company’s Capex. The company has shown improvement in finance and operation and maintained its rating at Ba3.
“The government has taken up several measures to curb imports and the positive momentum across global steel markets since April 2016” says Kaustubh Chaubal, a Moody’s Vice President and senior Analyst. He added that an increase in production of crude steel to 25%, increasing proportion of high- margin value added products and continuing cost rationalization initiative have aided the financial performance and profitability of JSW Steel.
“The change of JSW Steel’s ratings outlook to stable rests on Moody’s view that JSW Steel will maintain a cautious approach when evaluating expansions or potential acquisitions. Any departure in financial policies that result in debt-funded investments — such that leverage levels do not correct — will weigh on the company’s ratings,” said Chaubal.
News Sources: economictimes.indiatimes.com