The Hindu Business Line : Jindal Stainless Q4 net rises 3-fold; announces Rs 5,600-cr expansion plan

Future plans
Mr Jindal announced major expansion plan at its manufacturing plant in Orissa this year to increase its production capacity.
Jindal Stainless also plans to invest $ 30 million (around Rs 120 crore) in setting up three service centres in Europe and Mexico.

New Delhi May 28 Jindal Stainless Ltd for the fourth quarter ended March 31, 2007 posted a net profit of Rs 92.12 crore as against Rs 32.69 crore in the corresponding pervious quarter.

The total income for the quarter increased 72.01 per cent to Rs 1,435 crore as compared with Rs 84.32 crore in the same period last year.

For the financial year ended March 31, 2007 the net profit of the company was at Rs 353.01 crore as compared with Rs 159.73 crore posted for the fiscal ended March 31, 2006. The gross turnover of the company increased 51 per cent to Rs 5,267.8 crore as against Rs 3,494.61 crore posted the year before. Net sales for the year increased 53.22 per cent to Rs 4,877.5 crore as against Rs 3,183.14 crore last year.

"The growth in the turnover was mainly influenced by export sales which grew by 93 per cent year-on-year. The exports touched Rs 2,314.6 crore as compared with Rs 1,197.32 crore the year before," said Mr Ratan Jindal, Vice-Chairman and Managing Director of the company.

Mr Jindal also announced a major expansion plan at its manufacturing plant in Orissa this year to increase its production capacity to 0.8 million tonnes per annum (mtpa).

"We have embarked on an ambitious expansion plan, which would increase our capacity to 0.8 mtpa in the second phase. The total planned investments in this phase of the project are Rs 5,600 crore," Mr Jindal said at a press conference here on Monday.

He added that the company has already invested Rs 2,250 crore during phase I, which is nearing completion. During the first phase, the company had commissioned ferro alloy plants, coke oven and power plants.

Jindal Stainless also plans to invest $ 30 million (around Rs 120 crore) in setting up three service centres in Europe and Mexico to meet enhanced demand from the export market.

"We plan to set up two service centres in Europe and another in Mexico to cater to the export market. The company invests about $10 million in setting up one service centre," Mr Jindal said.

The company is also in the process of enhancing production capacity at its Indonesia plant, PT Jindal Stainless, by more than two-fold to 1,50,000 tonnes per annum from the present 65,000 tonnes.

It plans to invest around $35 million (approximately Rs 140 crore) in increasing capacity at the plant.

Apart from this, the company plans to launch three to four new products in the current fiscal.

Nickel prices

Speaking about the rising nickel prices, a key raw material in manufacturing stainless steel, Mr Jindal said, "Nickel prices have started firming up and the company expects a double-digit growth in its topline if the prices of the metal come down further."

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