Jindal Stainless Ltd Reports Q1 Dip Amid Global Challenges; Eyes Major Expansions

Jindal Stainless Ltd (JSL) reported a 12% fall in net profit for Q1, mainly due to lower income. Despite the decline, the company saw a 29% profit increase from the previous quarter. Efforts include a new JV in Indonesia, expansion in Odisha, and acquisition of Chromeni Steels.

Jindal Stainless Ltd (JSL) on Tuesday reported a 12 percent drop in consolidated net profit to Rs 646.07 crore during the June quarter, primarily attributed to lower income.

The company had achieved a net profit of Rs 737.58 crore in the corresponding period last year, as stated in an exchange filing. The total income declined to Rs 9,480.50 crore from Rs 10,227.20 crore in April-June 2023-24, while expenses fell to Rs 8,593.13 crore from Rs 9,279.15 crore in the same quarter a year earlier.

In the post-earnings call, JSL MD Abhyuday Jindal highlighted that stagnant growth in the US and EU markets led to flat export volumes. Additional challenges included extended transit times and higher freight costs due to the Red Sea issue. The company aims to raise up to Rs 5,000 crore to support expansion initiatives, pending shareholder and regulatory approvals.

(With inputs from agencies.)