Jindal Stainless Ltd (JSL) the country’s largest stainless steel-maker, Jindal Stainless Ltd (JSL) reported a near 160 per cent rise in consolidated net profit of ₹442 crore for the quarter-ended December 31, 2021. The profit in the year ago period stood at ₹171 crore.
Improved bottomline numbers came on the back of profitable harnessing of export markets, while maintaining total sales level on a YoY basi and a sharp product mix, attuned to market demand.
JSL reported a consolidated revenue from operations of ₹5,670 crore during Q3FY22, up 58 per cent.
Consolidated sales volume stood at 247,607 tonne.
On a sequential basis, revenue and PAT in Q3FY22 grew 11 per cent and 3 per cent respectively, in line with global commodity price increase.
In order to counter imports of subsidized stainless steel from China and Indonesia, which have practically doubled on a year-to-date, JSL strategically increased its exports share from 15 per cent in Q3FY21 to 26 per cent during Q3FY22,it said in a statement.
The first nine months FY22 witnessed an 84 per cent increase in stainless steel flat product import volumes compared to the average monthly imports in the last fiscal. Bulk of the imports came from China and Indonesia.
Prices of raw materials continued to climb in Q3FY22.
“The decision to revoke duties will impact the survival of MSME stainless steel producers which comprise 30 per cent of the manufacturing ecosystem, due to increased subsidised and dumped imports,” it said.
“An intelligent product mix and the agility to step up exports helped JSL in maintaining profitability despite stiff and unfair competition from Chinese and Indonesian imports,” Abhyuday Jindal, MD, JSL, said.
“Sharp focus on financial prudence and strong operating fundamentals have served us well, and we will continue to strategise business as per market dynamics,” he added.
Fund raising
Meanwhile, the JSL board has also approved fund raising of upto ₹3500 crore by issue of debt securities.
In a stock market notification, the company said, its Board approved “to raise funds, along with any other co-issuer, by way of issue of debt securities including secured or unsecured non-convertible redeemable debentures or bonds or commercial paper or notes (listed/unlisted) or any combination thereof, through private placement basis......an aggregate principal amount of ₹3,500 crore”.