Hot Chips

JSW Steel, India’s producer of steel in the third slot, has been one of the companies that which has been consistent with its performance. In the recently ended quarter, JSW Steel has posted a 54 per cent growth in crude steel production, its highest-ever quarterly output achieved. Crude steel production stood at 15.39 lakh tonnes in Q2FY10 as against 10.01 lakh tonnes in the year ago period. Sequentially also the company increased its crude steel production by 12 per cent. This increase was mainly due to commissioning of the new 2.8 million tonnes of steel capacity at the beginning of this financial year. We feel that the revival in the auto industry will directly affect the company’s sales, mainly the flat product. Moreover, with the end of rainy season construction activities picking up, the demand for long products category will increase. The demand for its products along with increased production will help the company to post better financial results going forward and therefore one can take exposure to the counter.