Jindal Stainless net profit surges 120% in Sept quarter

New Delhi: Jindal Stainless Limited (JSL) on Thursday reported a 120% year-on-year jump in its consolidated net profit at 764 crore for the quarter ended September. 

The Abhyuday Jindal-led firm posted a 12% increase in its consolidated revenue at 9,797 crore in the second quarter of the current fiscal year, it said in an exchange filing.

“Our domestic sales are up by 15% YoY, buoyed by the government’s push for stainless steel in strategic sectors. As we wait for the National Stainless Steel Policy, we are confident that the per capita consumption of stainless steel in India will increase from the current 2.8 kg in the coming years,” said Abhyuday Jindal, managing director of JSL.

Jindal had earlier told Mint that the government is in the final phase of implementing the National Stainless Steel policy.

The stainless steel manufacturer’s earnings before interest, tax, depreciation, and amortisation stood at 1,231 crore due to the rise in domestic demand for stainless steel.

“Ahead of the upcoming festive season, the company’s sales in the auto segment – besides other consumer-facing segments – witnessed an uptick,” the company added.

The company said the unchecked inflow of subsidized and substandard foreign imports continued to distort the level playing field against Indian manufacturers, especially the MSME sector.

“Chinese imports have increased by nearly 55% YoY. This highlights the unchecked dumping of subsidized and substandard Chinese products in the Indian market. We hope the government will take note of the continuous and rampant imports by China, which is hurting the sector, especially the MSMEs, as well the government’s vision of an Atmanirbhar Bharat,” Jindal added.

The company continued to maintain sales in global geographies with exports accounting for 13% of the total sales, up from 6% YoY. JSL’s net debt stood at 2,149 crore.

Meanwhile, the company’s board has approved the proposal to explore the option for liquidating its equity stake in its subsidiary, PT Jindal Stainless, Indonesia (PTJSI), at Gresik, Indonesia.

“The decision was taken in the wake of unfavourable market conditions in Indonesia due to the lack of a level playing field and competition with Chinese products. Most of the Indonesian market is dominated by Chinese players, and therefore, major markets such as the US and EU have levied severe trade protection measures on exports of stainless steel products from Indonesia,” the company added.

Shares of Jindal Stainless ended at 453.00 on the National Stock Exchange on Thursday, down 2.22% from previous close.

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Updated: 19 Oct 2023, 04:23 PM IST