Jindal Stainless Ltd (JSL) announced on Thursday that its consolidated net profit has more than doubled to Rs 764.03 crore in the September quarter, thanks to increased income. This is a significant increase from the Rs 347.02 crore net profit recorded in the same period last year, according to JSL’s regulatory filing.
During the second quarter of the current fiscal year, the company’s total income rose to Rs 9,828.97 crore, compared to 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 in the previous year.
JSL Managing Director, Abhy per cuday Jindal, stated that the company’s domestic sales saw a year-on-year increase, driven by the government’s efforts to promote stainless steel in strategic sectors. Jindal further expressed confidence in the future, expecting per capita consumption of stainless steel in India to rise from the current 2.8 kg in the coming years with the implementation of the National Stainless Steel Policy.
Jindal also highlighted the issue of Chinese imports, which have grown nearly 55% year-on-year. This surge in imports demonstrates the influx of subsidized and substandard Chinese products in the Indian market, posing a threat to the industry and hindering the government’s vision of an Atmanirbhar Bharat (self-reliant India). Jindal called for the government’s attention to address this issue, particularly in support of MSMEs, in line with the country’s self-reliance goals.
Additionally, JSL reported a significant increase in earnings before interest, taxes, depreciation, and amortization, which reached Rs 1,231 crore, an 80% increase compared to the previous year.
In light of challenging market conditions in Indonesia, JSL’s subsidiary, PT Jindal Stainless, Indonesia (PTJSI), is considering options to sell, liquidate, or divest its equity stake at Gresik, Indonesia. The Indonesian market is primarily dominated by Chinese players, leading to severe trade protection measures imposed by major markets such as the US and the EU on stainless steel product exports from Indonesia.
The 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 company expects to pay out approximately Rs 82.34 crore by November 17.
JSL’s sales volume for the second quarter reached 543,619 metric tonnes, reflecting a year-on-year increase of nearly 26% due to strong domestic demand. The company experienced increased sales in the auto segment and other consumer-facing sectors ahead of the upcoming festive season.
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