Companies

Q2 results: Jindal Stainless reports Rs 39.52 crore consolidated profit

Our Bureau New Delhi | Updated on November 11, 2019 Published on November 11, 2019

Abhyuday Jindal. File photo Abhyuday Jindal, Managing Director, Jindal Stainless Ltd

Consolidated total income for the period under review stood at Rs 3,298.14 crore

Jindal Stainless Limited has reported a Rs 39.52 crore consolidated net profit for the second quarter of financial year 2019-2020. This reflects a turnaround from the Rs 59.44 crore loss the company reported in the corresponding quarter of the previous financial year.

Consolidated total income for the period under review stood at Rs 3,298.14 crore, marginally down from Rs 3,305.22 crore reported by the company in the same period of the previous financial year.

Commenting on the results, Managing Director, JSL, Abhyuday Jindal said, “Despite moderate business sentiment, JSL was able to maintain a steady performance through consistent improvement in operational parameters and internal cost efficiencies. A weak global outlook was compounded by soaring imports from Indonesia over the last few months, adding pressure on margins.”

“Margins remained under pressure due to the challenging macroeconomic situation and surge in imports during the quarter under review. Total import from Indonesia in the second quarter stood at around 1.4 lakh tonnes, marking a 16 times growth over the corresponding period of last year, which was a little over 8,000 tonnes. This adversely impacted the domestic manufacturing sector, corresponding employment generation, and market prices. This has necessitated the immediate need for review of existing free trade agreements (FTAs), and the industry has sought government intervention with trade remedial measures to check disproportionate imports into the country at a time when all other nations have safeguarded their own turf,” a company statement said.

“Even though the government’s decision to withdraw from the Regional Comprehensive Economic Partnership (RCEP) is a welcome move, it is not adequate to keep the domestic industry at the same level as its global peers. We have sensitised the government about other imminent issues plaguing the industry, and look forward to more such steps in the future,” Jindal added.

Shares of the company closed 6.80 per cent higher at Rs 37.70 a scrip on Monday.

Published on November 11, 2019
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