Focus on niche products lifts Jindal Stainless net by 8% in Q1

Mumbai: Jindal Stainless on Monday reported an 8% year-on-year growth in its consolidated profit for the April-June period despite high input costs as focus on niche products helped business.

The company reported a bottom line of 329 crore compared to 306 crore a year ago. Favourable commodity prices helped the company improve its consolidated top line by 36% on-year to 5,474 crore despite a 1% dip in sales volume.

Earnings before interest, tax, depreciation and amortisation (Ebitda) declined by 9% to 549 crore. Ebitda margin narrowed by 487 basis points to 10%.


“JSL’s focused approach on niche product development and an agile product mix helped the company steer through an unprecedented and unsteady macro-economic challenges,” Abhyuday Jindal, the company’s managing director, said.

“The domestic stainless steel industry faced a double whammy during Q1 FY23. On the domestic front, continued dumping of stainless steel imports from China and Indonesia led to unfair competition, while simultaneously exports were severely impacted due to a 15% duty imposition by the government,” he said.

The stock of Jindal Stainless Ltd closed 1.58% higher on the BSE at 121.95. Benchmark Sensex ended the day 0.55% lower.

The company’s board also approved the acquisition of Jindal United Steel Limited, a promoter-owned entity, for 958 crore. The company operates a hot strip mill for rolling stainless steel and carbon steel slabs with the total capacity being enhanced to 3.6 million tonnes per annum (MTPA). It also operates a cold rolling mill (CRM) with a capacity of 0.2 MTPA for stainless steel applications.