Jindal Stainless Ltd (JSL), the country’s largest stainless steel maker, reported a 152 per cent rise in standalone net profit at ₹669 crore for the quarter ended March 31. Profit in the year-ago period stood at ₹265 crore. 

Turnover for the period under review stood at ₹6,287 crore, up 65 per cent y-o-y. 

The company, in a statement said, despite volatility and global disruptions in raw material supply and logistics, it effectively doubled its exports sales proportion to 32 per cent of total sales volume in Q4FY22; compared to 16 per cent in the year-ago-period. This was achieved due to a focus on the value-added product segments.

Net external debt stood at ₹1,546 crore, while debt-to-equity ratio reduced to 0.6. Interest cost reduced by 25 per cent to ₹68 crore, for the period under review. 

On a consolidated basis, JSL recorded revenue of ₹6,564 crore, with  EBITDA and PAT at ₹842 crore and ₹750 crore, respectively.

Full year consolidated revenue stood at ₹21,223 crore, up 74 per cent, y-o-y; while PAT stood at ₹1,909 crore, up 355 per cent. 

Key domestic sectors like elevators and escalators, railway wagons, railway coaches and metros continued to register a steady demand. 

“JSL is closely working with major domestic players across these segments to customise products as per their requirement. The company supplied various critical grades like super duplex and cobalt restricted stainless steel for various indigenous nuclear applications and key fertilizer projects,” it said in a statement. 

Cheap imports

The company has also raised concerns on dumping of imported and subsidised material from China and Indonesia, which led to a muted domestic demand and reduced price levels. On the domestic front, Chinese and Indonesian imports of subsidised stainless steel products continued to disrupt the Indian market. It is estimated that imports from China and Indonesia rose by 147 per cent and 280 per cent, respectively in FY22 (over last fiscal). 

The international nickel and ferro-chrome prices jumped 52 per cent and 121 per cent respectively in Q4FY22. 

The ongoing Russia-Ukraine unrest has adversely impacted the global supply chain and commodity prices, it added. 

The Board of Directors of JSL approved modification in existing dividend policy of the company providing interalia that efforts will be made to target dividend up to 20 per cent of PAT on progressive basis in future.

According to Abhyuday Jindal, MD, JSL, the company is working with its customers for catering to new opportunities of stainless steel applications in infra and other emerging sectors like green hydrogen and ethanol. 

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