Mumbai, July 18 -- JSW Steel Ltd reported better-than-expected profit for the June quarter, driven by higher production and sales volume as well as lower cost of coking coal, a key ingredient.

The steelmaker's first-quarter profit jumped to Rs.2,209 crore from Rs.867 in the same quarter a year ago, according to the company's exchange filings. A key reason for this was improved steel prices, primarily due to the government's 12% safeguard duty to protect the industry from cheap steel imports from China.

"Steel prices rose during the quarter, while sales volumes also picked up due to the ramp-up of the Vijayanagar expansion project," said Suman Kumar, analyst at Dolat Capital.

The rise in steel prices, however, is a temporary phenomenon ...