Jindal Stainless (Hisar) Ltd reported a 46 per cent drop in standalone net profit at ₹181 crore for the quarter ending September 30, 2022. Net profit in the year-ago-period stood at ₹338 crore.

The company’s standalone revenue dipped 1 per cent y-o-y to ₹3,448 crore; and EBITDA fell 41 per cent to ₹296 crore for the period under review.

According to a company statement, the Centre’s decision to impose duty on exports of stainless steel products has “severely impacted” international sales. During Q2FY23, exports accounted for 8 per cent of JSHL’s total sales volume, down from 17 per cent in the previous quarter.

“Development and supply of niche value-added stainless steel grades and critical materials across various sectors aided its adaptive strategy,” it said.

Domestic sales up

JSHL’s domestic sales registered a growth of nearly 54 per cent q-o-q on the back of a strong demand from sectors like auto, lift and elevators, railway wagon, process industries and ornamental pipe and tubes.

During Q2FY23, raw material prices saw a downward trend, with nickel prices falling by 24 per cent q-o-q and those of ferro-chrome by 18 per cent q-o-q. This impacted the realization and profitability of domestic manufacturers, including the company.

The net external debt of the company reduced to ₹952 crores as on September 30, 2022, and its net debt-to-equity ratio improved to 0.2.

On a consolidated basis, JSHL’s Q2FY23 net proft was ₹253 crore, down 49 per cent y-o-y and net revenue was ₹3,926 crore, down by 5 per cent.

According to Abhyuday Jindal, Managing Director, JSHL, the Indian stainless steel industry has suffered a setback due to the export duty levy. “This duty comes at a time when the domestic market is being dumped with substandard stainless steel imports from China and Indonesia. We have made several representations to the government and are hopeful of remedial actions to support the struggling domestic industry,” he said.

Related Topics
comment COMMENT NOW