The move by major steel makers to cut prices to aid the government in curbing inflation, was likely to hurt JSW?s margins by Rs 400 crore to Rs 500 crore during the fiscal, according to JSW chief executive Y Siva Sagar Rao. ?Our margins could be impacted by Rs 400 crore to Rs 500 crore, depending on the prices of the raw materials,? Rao said, adding that the company was ?however, trying to offset the impact by improving efficiencies.?
During May 2008, many steel makers had agreed to cut their prices by Rs 2,000 crore to Rs 4,000 crore per tonne and hold the prices till July 2008.JSW president – sales and marketing, Jayant Acharya said that the price cut had impacted the industry?s margins as prices of raw materials multiplied during the last one year, when coal prices were up three times and iron ore prices rose over 80% compared to last year.