Jan 23 (Reuters) - India's JSW Steel (JSTL.NS), reported a bigger-than-expected rise in third-quarter profit on Friday, as higher sales volumes helped offset the impact of lower steel prices.

Consolidated net profit nearly tripled year-on-year to 21.39 billion rupees ($232.7 million) for the quarter ended December 31, topping analysts' average estimate of 16.22 billion rupees, per data compiled by LSEG.

Indian steelmakers were expected to deliver stronger volume growth during the October-December period, aided by capacity ramp-ups, according to analysts at Jefferies.

The Mumbai-based firm's consolidated crude steel production rose 6%, driven by ramp up of the JVML-Vijayanagar project. Its sales volume increased 14% during the quarter driven by healthy domestic demand, the company said, compared to 12% growth a year ago.

Revenue from operations rose 11.1% to 459.91 billion rupees, while analysts expected 445.94 billion rupees.

Steel prices remained under pressure in the third quarter, pressured by softer rates for flat products with supply outpacing demand, analysts at Elara Capital said.

However, the recent rebound in steel prices since December, aided by anti-dumping safeguard duty, are expected to provide near-term support to the sector.

Last month, the Indian government imposed a three-year import tariff, locally known as a safeguard duty, on select steel products to curb shipments from China.

Earlier, the government had implemented a temporary 12% duty for 200 days in April. While that shorter duration caused investor uncertainty, the new three-year window is expected to provide long-term protection for local players.

JSW Steel also lowered its capital expenditure guidance for the financial year 2026 to the range of 150 billion rupees-160 billion rupees, from the previous guidance of 200 billion rupees.

JSW Steel's shares closed 1.2% lower ahead of the quarterly results.