Jindal Stainless Ltd (JSL) announced on Thursday that its consolidated net profit more than doubled to Rs 764.03 crore in the September quarter, driven higher income. According to JSL’s regulatory filing, the company had recorded a net profit of Rs 347.02 crore in the same period last year. The total income of JSL for the second quarter of the current fiscal year reached Rs 9,828.97 crore, compared to Rs 8,776.61 crore in the previous year. However, the company’s expenses increased to Rs 8,944.04 crore from Rs 8,335.52 crore in the year-ago period.
JSL Managing Director, Abhy per cuday Jindal, expressed optimism about the growth of stainless steel consumption in India as the government promotes its use in strategic sectors and the anticipated implementation of the National Stainless Steel Policy. Jindal believes that the per capita consumption of stainless steel in India, currently standing at 2.8 kg, will increase in the coming years. He also raised concerns about the significant increase in Chinese imports nearly 55% year-on-year, illustrating the influx of substandard Chinese products into the Indian market. Jindal called for government intervention to protect the sector and the vision of an Atmanirbhar Bharat (self-reliant India) curbing imports from China, which particularly affects MSMEs (Micro, Small, and Medium Enterprises).
During the September quarter, JSL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 80% year-on-year to Rs 1,231 crore. Additionally, the company’s board approved the proposal to explore options for selling, liquidating, or divesting equity stake in its subsidiary, PT Jindal Stainless Indonesia (PTJSI), due to unfavorable market conditions and competition with Chinese products.
Furthermore, the Board of Directors approved an interim dividend of Re 1 per equity share for FY24. The record date for determining shareholders’ entitlement is set for October 28, with the dividend to be paid on or before November 17. The total payout for the dividend is expected to be around Rs 82.34 crore. Additionally, JSL reported a sales volume of 543,619 metric tonnes for the second quarter, reflecting a growth of nearly 26% year-on-year, driven robust domestic demand. The company also noted increased sales in the auto segment and other consumer-facing sectors ahead of the festive season.