Jindal Stainless Q4 Net Profit Declines to Rs 500 Crore Amidst Nickel Price Fluctuations

With consistent increase in dumping, the stainless steel market in India continues to be flooded by substandard exports, threatening the MSME sector and disrupting the level-playing field needed for fair competition and further innovation, he said.Jindal recently announced a major acquisition and expansion plans to the tune of Rs 5,400 crore to augment its melting and downstream facilities to reach a capacity of 4.2 million tonnes per annum MTPA.

Jindal Stainless on Wednesday reported a 30 per cent fall in consolidated net profit to Rs 500.65 crore for the March quarter impacted by falling raw material prices, coupled with margin pressures.

It had clocked a net profit of Rs 716.29 crore during the fourth quarter of FY23, the company said in an exchange filing.

The company's total income also decreased to Rs 9,509 crore in the fourth quarter the March quarter from Rs 9,803.01 crore in the year-ago period. During the period under review, its expenses stood at Rs 8,805.55 crore against Rs 8,885.45 crore a year ago. The board of the company also recommended a final dividend of Rs 2 per equity share for the financial year ended March 31. For the entire fiscal, the company's net profit was at Rs 2,693.48 crore, higher from Rs 2,083.83 crore in FY23.

Its income was also higher at Rs 38,731.59 crore against Rs 35,823.32 crore in the preceding financial year.

In a separate statement, JSL said its net debt as on March 31, 2024 stood at Rs 2,418 crore, 22 per cent down from the third quarter of FY24.

The company recorded sales at 21,74,610 tonnes, a jump of 23 per cent over FY23.

In a post-earnings call, JSL MD Abhyuday Jindal said, ''The company's margins remained under pressure on account of negative inventory valuation due to continuously falling nickel prices. ''Key export markets such as Europe and the US, also remained weak. The Red Sea crisis during the quarter further led to a steep increase in ocean freight and constrained availability of containers, consequently compressing margins.'' Stainless steel imports from China continued to surge and reached about 1,40,000 tonnes in the March quarter, registering an increase of 20 per cent year-on-year. With consistent increase in dumping, the stainless steel market in India continues to be flooded by substandard exports, threatening the MSME sector and disrupting the level-playing field needed for fair competition and further innovation, he said.

Jindal recently announced a major acquisition and expansion plans to the tune of Rs 5,400 crore to augment its melting and downstream facilities to reach a capacity of 4.2 million tonnes per annum (MTPA). Speaking during the call, he said of the planned Rs 5,400 crore, Rs 4,700 crore is to be utilised during in this fiscal. It includes Rs 500 crore towards maintenance.

It includes a 49 per cent partnership in a joint venture for a 1.2 MTPA stainless steel melt shop in Indonesia, expansion in downstream capacity in Jajpur, Odisha, and acquisition of a 54 per cent equity stake in Chromeni Steels in Mundra, Gujarat.

Jindal Stainless is the country's largest stainless steel making company.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)