Jindal Stainless Ltd (JSL) announced a significant increase in its consolidated net profit for the September quarter. The company’s net profit more than doubled to Rs 764.03 crore, compared to Rs 347.02 crore in the same period last year. JSL attributed this growth to higher income. Their total income for the second quarter of the current fiscal year also rose to Rs 9,828.97 crore from Rs 8,776.61 crore in the previous year.
Expenses for JSL during this period were reported at Rs 8,944.04 crore, exceeding last year’s expenses of Rs 8,335.52 crore. JSL’s Managing Director, Abhy per cuday Jindal, commented on the positive performance, stating that domestic sales had increased year-on-year due to the government’s support for stainless steel in strategic sectors. He expressed confidence that with the upcoming National Stainless Steel Policy, India’s per capita consumption of stainless steel will increase from the current 2.8 kg in the coming years.
However, Jindal expressed concerns about the impact of Chinese imports on the Indian market. He highlighted a 55% year-on-year increase in Chinese imports, which he believes is due to the dumping of subsidised and substandard Chinese products. Jindal called for the government to take action against the rising imports, as it is detrimental to the sector, especially Micro, Small, and Medium Enterprises (MSMEs), and contradicts the government’s vision of an Atmanirbhar Bharat (self-reliant India).
In the September quarter, JSL’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached Rs 1,231 crore, marking an 80% increase year-on-year. Additionally, the company’s board approved the proposal to explore options for selling, liquidating, or divesting equity stake in its subsidiary, PT Jindal Stainless, Indonesia (PTJSI) at Gresik, Indonesia, due to unfavorable market conditions and competition with Chinese products.
JSL’s Board of Directors also approved an interim dividend of Re 1 per equity share for FY24, with a record date set for October 28. The dividend payment, totaling approximately Rs 82.34 crore, will be made on or before November 17. The company attributes the increase in sales volume during the second quarter, which reached 543,619 metric tonnes, to robust domestic demand. Particularly, sales in the auto segment and other consumer-facing sectors experienced growth ahead of the upcoming festive season.
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