JSW Steel - Q1 production figures

JSW Steel Ltd has announced that the Company is in the process of further expansion of its capacity from 2.8 mtpa to 4 mtpa this year. Enumerating on its production statistics for the first quarter of the year 2006-07, the Pellet production was pegged at 0.970 million tonne, an increase of 7% as compared to the quarter 1 for 2005-06 (0.908 million tonne). The Hot Metal production at 0.610 million tonne was 8% higher as compared to the same quarter in the previous year while the Crude steel at 0.560 was 5% higher than 0.532 in quarter 1 for 2005-06. The production of HR Plates at 0.042 is an increase of 83% as compared to 0.023 million tonne for the corresponding quarter for the previous year 2005-06. The 0.249 million tonne production of HR Coil saw a dip of 52% as compared to the corresponding quarter of the previous year which was at 0.513 million tonne. The Galvanised products at 0.132 million tonne was lower by 18% as compared to 0.160 million tonne for the corresponding quarter last year. Explaining the cut down of production of the HR coil and the galvanized products, Seshagiri Rao, Director Finance, of the Company stated that "in keeping with our expansion strategy, various production facilities including the Hot Strip Mill at the Company´s plants were either taken under maintenance or shut down for up gradation, during the month of April- May." The slow down in production was planned and anticipated by the company. "We are now geared for full production". For the year ending March 2006, the Company had created records with its Hot Metal production crossing 0.225 million tonne. The refractory lining of its 2 steel making converters had crossed 11900 heats and 7700 heats respectively which made the lining life at par with those at the international level and distinctively higher than the converters operating in India.

Source : Equity Bulls

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