JSW Steel Ltd has recorded an increase of 3.01% in its net profit, which stood at Rs 350.27 crore during the first quarter of the existing financial year.

The country's second largest steel manufacturer had recorded a net profit of Rs 340.02 crore in the same period of 2009.

In a declaration, the firm stated that its total income surged 12.62% to Rs 4,683.35 crore for Q1FY11 as against Rs 4,158.23 crore during Q1FY10.

The company posted an increase of 26.18% in its consolidated net PAT, which stood at Rs 295.37 crore for the three month period ended June 2010 as compared to Rs 234.08 crore in the same period of 2009.

JSW Steel's total income increased by 14.28% at Rs 4,861.20 crore for the three month period ended June 2010 as compared to Rs 4,253.52 crore for the quarter ended June 2009.

JSW Steel announced that Japanese steel major JFE will get hold of 14.99% equity stake in the company for more than Rs 4,800 crore.

This will help the Indian company to lessen its overall debt.

"The agreement provides JFE to maintain its shareholding not more than 14.99 per cent in JSW," JSW Steel said.