February 23, 2012: JFE Holdings Inc's decision to increase its stake in India's JSW Steel Ltd is expected to boost the Japanese steelmaker's pretax profit by nearly 5 billion yen ($62.7 million) next fiscal year, the Nikkei said.

Last week, JFE increased its stake in JSW Steel from 14.99% to 15%. The 15% share works out to about 4.8 billion yen, the business daily reported. JFE has a part-time director on JSW Steel's board and has taken other steps to deepen their relationship, the Nikkei said.

Income from the Indian steelmaker will add to JFE's consolidated earnings from January onwards though the impact on this fiscal year's results will be small, the daily said.
For the fiscal year ending March 2013, JSW Steel is expected to see a 19.5 billion rupee ($396.1 million) net profit, the Nikkei said.

Source: The Economic Times