Jindal Stainless Ltd (JSL) announced today that its consolidated net profit in the September quarter has more than doubled to Rs 764.03 crore, thanks to increased income. In comparison, the company had recorded a net profit of Rs 347.02 crore during the same period last year, according to a regulatory filing by JSL.
During the second quarter of the current fiscal year, the company’s total income rose to Rs 9,828.97 crore from Rs 8,776.61 crore in the previous year. However, JSL’s expenses also increased to Rs 8,944.04 crore, up from Rs 8,335.52 crore.
JSL Managing Director, Abhy per cuday Jindal, stated that the company’s domestic sales have seen a year-on-year increase, driven by the government’s promotion of stainless steel in strategic sectors. He expressed confidence that the per capita consumption of stainless steel in India will rise from the current 2.8 kg in the coming years, especially with the anticipated implementation of the National Stainless Steel Policy.
The MD emphasized that Chinese imports have surged by around 55% year-on-year, indicating the unchecked dumping of subsidized and substandard Chinese products in the Indian market. He called on the government to address the growing imports from China, which are adversely affecting the industry, particularly the MSMEs, and hindering the vision of an Atmanirbhar Bharat.
In terms of financial performance, JSL’s earnings before interest, taxes, depreciation, and amortization in the September quarter reached Rs 1,231 crore, marking an 80% increase year-on-year.
Furthermore, the company’s board has approved the exploration of selling, liquidating, or divesting equity stake in its subsidiary PT Jindal Stainless, Indonesia (PTJSI), located in Gresik, Indonesia. This decision was influenced by unfavorable market conditions and competition with Chinese products in Indonesia. Major markets such as the US and the EU have imposed strict trade protection measures on stainless steel product exports from Indonesia due to its domination by Chinese players.
In addition, JSL’s Board of Directors has sanctioned an interim dividend of Re 1 per equity share for FY24. The record date for determining shareholder entitlement is set for October 28, and the dividend will be paid on or before November 17, amounting to approximately Rs 82.34 crore in total.
The company reported a sales volume of 543,619 metric tonnes in the second quarter, a substantial increase of nearly 26% year-on-year, driven by strong domestic demand. As the festive season approaches, JSL experienced a boost in sales in the auto segment and other consumer-facing sectors.
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