Jindal Stainless (Hisar) Ltd (JSHL) posted a consolidated net profit of ₹359 crore in the first quarter of FY22 against a profit of ₹351 crore in the fourth quarter of the previous financial year, a company statement said on Friday.
However, JSHL registered a 11 per cent loss in revenue at ₹2,776 crore compared to ₹3,103 crore in the previous quarter.
In the corresponding quarter of FY21, the company posted a net loss of ₹94 crore on a revenue of ₹852 crore, the statement said.
The standalone profit and revenue of JSHL were ₹240 crore and ₹2,512 crore against a loss of ₹50 crore and earnings of ₹743 crore y-o-y.
JSHL sold 151,121 tonnes of steel, up 219 per cent over the same period of last year on the back of stable domestic demand in segments like Railways, process industry and elevators.
“Demand from consumer facing segments like auto, pipe and tube recovered by the end the quarter. JSHL’s leadership in the value-added segment, government’s focus on developing sustainable infrastructure with low life-cycle cost material, and improving economic outlook are likely to further boost stainless steel demand in the coming quarters,” the company said.
It is to be noted that the domestic-export share of sales volumes during the quarter, on a y-o-y basis, remained unchanged compared to the same period of last year.
In addition, JSHL’s Board of Directors approved a brownfield expansion plan to leverage its leadership position in specialty products, thereby enhancing its product mix and augmenting market reach. The expansion of Specialty Products Division (SPD), with an estimated capex of ₹450 crore, is planned to be rolled out in two phases.
The company plans to expand its precision strip capacity by three times. It will go from the current capacity of 22,000 tonnes per annum (TPA) to 60,000 TPA in two phases. It would strengthen the company’s presence in segments such as auto, process industry, and oil and petrochemicals, and also cater to niche segments like aerospace and electric vehicles, the release added.
The blade steel capacity is also being planned to be expanded by 1.7 times to 24,000 TPA in two phases. After the first phase of expansion by Q2 FY23, the total capacity would stand at 20,000 TPA.
“The expansion of SPD will further consolidate JSHL’s dominance in the specialty stainless steel segment. The expansion will enable us to foray into new and upcoming high-end segments like EVs and Aerospace. This transformation, along with an intensified approach towards digital manufacturing, would accelerate JSHL’s growth,” Managing Director, JSHL, Abhyuday Jindal, said.