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Jindal Stainless Q3 results: Net profit rises 39% to Rs 692.33 crore

Revenue from operations at Rs 9,127.45 in Q3FY24 crore was higher from Rs 9,062.50 crore in the same period last year

Jindal Stainless gets notice from JSL Overseas for conversion of preference shares

Ishita Ayan Dutt Kolkata

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Jindal Stainless on Thursday reported a 39.15 per cent year-on-year (Y-o-Y) increase in consolidated net profit in the December quarter of the current financial year to ₹692.33 crore from ₹497.51 crore in the same quarter last year.

Revenue from operations at ₹9,127.45 crore in Q3 FY24 was higher than ₹9,062.50 crore in the same period last year.

Sequentially, profit was down by 10.59 per cent and revenue by 6.83 per cent as the company took a shutdown.

The board of Jindal Stainless has given an in-principle approval for the acquisition of a 100 per cent stake in Iberjindal S L, a subsidiary company based out of Spain. The board also decided to divest a 26 per cent stake in Jindal Coke as it was not part of the core business activities of the company.

The board also announced the elevation of Tarun Kumar Khulbe, whole-time director, as chief executive officer with effect from January 1, 2024.

Abhyuday Jindal, managing director of Jindal Stainless, said, despite a global slowdown in stainless steel markets, the domestic market has been witnessing steady growth.

The company had earlier guided export sales of 15 per cent, but given the geopolitical headwinds and the Red Sea crisis, it was unlikely to be met. Jindal, however, said that the company was confident of meeting volumes given the strong domestic demand. “We are not dropping our volume guidance because we see very good demand in the domestic market.”

The situation unfolding in the Red Sea had increased the company’s time and cost to Europe. Jindal also said that the demand in Europe and the US was yet to pick up.

However, the company said that 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.

The biggest challenge for the sector was imports, Jindal said. “Imports are the biggest threat for any metal company.”

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First Published: Jan 18 2024 | 9:22 PM IST

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