Jindal Stainless Result: Jindal Stainless Limited (JSL), one of the country’s leading stainless steel manufacturers, has announced its latest financial results. During the quarter ending March 2024, the company’s consolidated net profit fell by 30 percent to Rs 500.65 crore. The total income of the company also declined to Rs 9,509 crore during the fourth quarter (Q4FY24). The company has also announced a dividend of Rs 2 per share for the financial year 2023-24. Margin pressure and fall in nickel prices are being held responsible for the decline in the company’s profits. Jindal Stainless is the country’s largest stainless steel manufacturing company.
Profit was Rs 500.65 crore in March quarter
According to the results announced after the stock market closed on Wednesday, the integrated net profit of Jindal Stainless declined by 30 percent to Rs 500.65 crore in the March quarter. Whereas during the fourth quarter of the financial year 2022-23, the company had earned a consolidated net profit of Rs 716.29 crore. The company has said in its exchange filing that its total income also declined to Rs 9,509 crore in the fourth quarter, which was Rs 9,803.01 crore in the same period a year ago. During the same period, the company’s expenses stood at Rs 8,805.55 crore as compared to Rs 8,885.45 crore a year ago.
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Net profit increased by 29% during the entire financial year
The company’s board of directors has also recommended a final dividend of Rs 2 per equity share for the financial year ending March 31. The company’s net profit for the entire financial year stood at Rs 2,693.48 crore, which is about 29 percent more than the net profit of Rs 2,083.83 crore in FY23. The company’s income also increased to Rs 38,731.59 crore in FY24, which was Rs 35,823.32 crore in the previous financial year. During the same period, the company’s sales volume increased by 23 percent to 21,74,610 tonnes. In a separate statement, JSL said its net debt as on March 31, 2024, was Rs 2,418 crore, down 22 per cent from Q3FY24.
Jindal Stainless Limited announced its financial results for FY24, with annual standalone sales volume increasing 23% to 21,74,610 tonnes. The standalone revenue for the company stood at INR 38,356 crore, up by 9%, while the standalone EBITDA and PAT for the year were recorded at… pic.twitter.com/jfgsnz96pM
— Jindal Stainless (@Jindal_Official) May 15, 2024
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Domestic industry troubled by China’s increasing imports
JSL Managing Director Abhyudaya Jindal said after the results, “Inventory valuations turned negative due to the continuous decline in nickel prices. Due to which the company’s margins remained under pressure. Major export markets like Europe and America also remained weak. During the fourth quarter, the Red Sea crisis led to a significant increase in ocean freight costs and reduced container availability, further reducing margins. Import of stainless steel from China is also continuously increasing and it increased to 1,40,000 tonnes in the March quarter, which is 20 percent more than the same quarter last year. He said that due to continuous dumping by China, the stainless steel market in India is filled with substandard goods, which is threatening the MSME sector and denying the necessary level playing field for fair competition and further innovation.
