India’s Jindal Steel beats Q2 profit estimates on lower costs

(Reuters) – Indian steelmaker Jindal Steel and Power reported a higher-than-expected second-quarter profit on Tuesday, helped by a drop in raw material costs.

Consolidated net profit after tax surged more than six-fold to 13.90 billion rupees ($167 million) in the quarter, beating analysts’ average estimate of 10.99 billion rupees, according to LSEG data.

“(The) strong performance was driven by a sharp reduction in costs, which offset seasonally weak pricing environment during the quarter”, the New Delhi-based company said in a statement.

The company’s costs fell 13%, helped by a drop in costs of iron ore and metallurgical coal, the two main raw materials used in making steel.

Earlier this month, JSW Steel reported a second-quarter profit, boosted by strong demand and lower input costs. ($1 = 83.2246 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Savio D’Souza)