Jindal Stainless Q2 net profit rises 11% to Rs 898 crore
Listen to this article in summarized format
AgenciesThe country's largest producer of stainless steel now expects 4-6% volume growth, down from the 7-9% that it had guided for at the start of the year.
This is likely to be the lowest volume growth for the company in at least five years.
"Our first quarter was badly disrupted, so we are revising the sales guidance downward," chief executive officer Tarun Khulbe said on a call.
In the June quarter, Jindal Stainless' sales volume had seen an over 7% YoY decline.
The New Delhi-based company saw an 11% year-on-year rise in its consolidated net profit to ₹898 crore for the September quarter. Of this, ₹116.41 crore was an exceptional gain, related to a tax provision and an Indonesian subsidiary.
Net revenue for the quarter grew more than 18% on-year to ₹12,874 crore. Jindal Stainless sold 6,64,378 tonnes of steel during the quarter, up 2.5% compared to the previous year. Of this, 11% were exports.
“The quarter marked a resilient recovery following the operational disruptions in Q1, which had been impacted by geopolitical situation and industrial gas availability constraints,” the company said in a statement. “Demand performance was underpinned by higher contributions from value-added products, along with momentum in the automotive and ornamental pipe & tube segments,” it said.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at Rs 1,433 crore, up more than 3% on year, while the EBITDA made on each tonne of stainless steel was Rs 21,570.
Jindal Stainless had guided for its EBITDA per tonne in the range of Rs 18,000 – 20,000 at the start of the year, which it now sees in the range of Rs 20,000 – 22,000.
The company announced its earnings after market hours on Thursday, and its shares closed at 708.60 rupees on the BSE, down 3.4% from the previous close.