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

Oct 31 (Reuters) - Indian steelmaker Jindal Steel and Power (JNSP.NS) 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 companys 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 (JSTL.NS) reported a second-quarter profit, boosted by strong demand and lower input costs.

($1 = 83.2246 Indian rupees)