Jindal Stainless Ltd Q3 Profit Soars 35% to Rs 691 Crore

New Delhi, January 18: Jindal Stainless Ltd (JSL) announced a significant 35% increase in its consolidated net profit, reaching Rs 691.22 crore during the December quarter of the current fiscal year. This growth is attributed to a reduction in expenses compared to the previous year.

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Financial Performance

In the October-December period of the preceding 2022-23 fiscal, the company's net profit stood at Rs 512.62 crore. Total income also witnessed an uptick, rising to Rs 9,166.42 crore from Rs 9,101.24 crore in the corresponding quarter of the previous year. Notably, expenses decreased to Rs 8,262.66 crore during the period under review, compared to Rs 8,451.20 crore in the same quarter of the previous year.

Key Developments

In a significant development, JSL announced the elevation of its Whole-time Director, Tarun Kumar Khulbe, as its Chief Executive Officer (CEO) with effect from January 1, 2024. Additionally, the company's board granted in-principle approval for the acquisition of up to 100% stake in Iberjindal S.L., a subsidiary company based in Spain. The board delegated its power to a subcommittee to negotiate the purchase price.

Furthermore, JSL approved the divestment of up to the entire 26% equity stake held in Jindal Coke Ltd, an associate company with a net worth of Rs 582 crore.

Management Outlook

In a conference call, JSL Managing Director Abhyuday Jindal expressed optimism about the domestic market's steady growth despite a global slowdown in stainless steel markets. He emphasized the company's focus on green manufacturing, operational excellence, business development, and nation-building. Jindal highlighted the rising demand for stainless steel in the auto sector and the decorative pipe and tube sector.

Production and Sales

JSL commenced production at its newly acquired facility in Ghaziabad, Uttar Pradesh, expanding its product offerings to include long products like wire rods and rebars. The company's sales volume reached 5.12 lakh tonnes (LT) during the December quarter, marking a 9% increase compared to 4.68 LT in the same quarter of the previous fiscal year. However, sales volume declined by 6% quarter-on-quarter to 5,43,619 tonnes due to a two-week shutdown for maintenance work.

Addressing Import Issues

Jindal raised concerns about the influx of subsidized and substandard foreign imports, particularly in the 300 series, primarily from China and Vietnam. He emphasized the need for stricter implementation of quality norms by the Bureau of Indian Standards (BIS) to curb such imports.

Plans for Expansion

JSL's plans to acquire a stake in Spain-based Iberjindal aim to strengthen its presence in Europe and expand its global reach.

Jindal Stainless Ltd's strong financial performance and strategic initiatives position the company for continued growth and success in the stainless steel industry. With a focus on operational efficiency, product diversification, and market expansion, JSL is well-poised to capitalize on the growing demand for stainless steel in India and beyond.