(Oct 23): JSW Steel Ltd’s fiscal second-quarter (2Q) profit more than tripled beating expectations, as India’s infrastructure buildout drove prices higher.

Net income of the country’s biggest steelmaker by capacity increased 226% from a year earlier to 52.8 billion rupees (RM2.27 billion) in the three months through September, the company said in a statement on Friday. Analysts had forecast about 43.5 billion rupees, according to an average of estimates compiled by Bloomberg. 

India’s steelmakers are preparing for prolonged growth in demand as the government invests heavily in public works. The nation’s steel consumption is expected to more than triple to 505 million tonnes by 2047, according to a draft policy released this month, setting the stage for a major expansion among producers. JSW plans to spend as much as 240 billion rupees in the next fiscal year to increase capacity. 

The price of hot-rolled coil, part of JSW’s mainstay flat-steel operations, rose 21% over a year earlier to 59,902 rupees a tonnes in the three months through September, according to Kotak Institutional Equities. The company reported a 5% increase in production over the quarter to 7.27 million tonnes.

Revenue rose 21% on year to 544.9 billion rupees, while raw material costs increased 13% to 269.17 billion rupees.

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