Jindal Stainless reports 35 pc rise in Q3 net profit; sales grow 9 pc to 5.12 LT

Jindal Stainless Ltd (JSL) on Thursday posted a 35 per cent rise in its consolidated net profit to Rs 691.22 crore during the December quarter, aided by lower expenses.

Its net profit was at Rs 512.62 crore during the October-December period of the preceding 2022-23 fiscal, the company said in a regulatory filing.

The company's total income was also higher at Rs 9,166.42 crore as against Rs 9,101.24 crore in the year-ago quarter.

While expenses reduced to Rs 8,262.66 crore during the period under review, from Rs 8,451.20 crore a year ago.

The company also announced the elevation of its Whole-time Director Tarun Kumar Khulbe as its CEO with effect from January 1, 2024.

The board of the company has also given in-principal approval for the acquisition of up to 100 per cent stake in Iberjindal S.L., a subsidiary company based out in Spain. The board has delegated its power to the subcommittee of the board for negotiating the purchase price.

Further, it has approved to divest up to entire 26 per cent equity stake held in Jindal Coke Ltd, an associate company, which has a net worth of Rs 582 crore.

In a conference call, JSL Managing Director Abhyuday Jindal, said, ''Despite a global slowdown in stainless steel markets, the domestic market has been witnessing steady growth. Given the promise that India holds for the near and far future, we are confident of meeting our volumes in the next quarter. We will continue to focus our energies on green manufacturing, operational excellence, business development, and nation-building.'' The domestic demand for stainless steel continued to be on the rise, with the auto sector witnessing growth in all segments, and the decorative pipe and tube sector registering robust growth as well, he said.

The company has begun production at its newly acquired facility in Ghaziabad, Uttar Pradesh to widen its product offerings through the addition of long products like wire rods and rebars to the company's existing product portfolio, Jindal said.

The sales volume stood at 5.12 lakh tonne (LT), 9 per cent higher than 4.68 LT in the December quarter of the last fiscal.

The sales volume fell 6 per cent to 5,43,619 tonne quarter-on-quarter as the company took a shutdown of up to two weeks for maintenance work, he said.

On the issue of import, Jindal said, ''The implementation of mandatory quality norms by the Bureau of Indian Standards (BIS) checked the influx of the 200 series grades of subsidised and substandard foreign imports in the quarter. However, there was a sharp increase in the dumping of the 300 series, to the tune of 73 per cent, majorly from China and Vietnam.'' The company has plans to increase its presence in Europe, he said on the objective behind the JSL's plans related to acquiring a stake in Spain-based Iberjindal.

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