JSHL posts 19% rise in Q4 profit at Rs 66 crore

Jindal Stainless (Hisar) Limited (JSHL) reported a 19% increase in net profit in Q4FY19 to Rs 66 crore on a sequential basis even as net revenue went up 6% to Rs 2,361 crore during the quarter on higher demand from metro, railway and value added segments. Earnings before interest tax depreciation and amortization (EBITDA) grew by 8% to Rs 261 crore in Q4FY19 over Q3FY19. JSHL said high value segments like blade steel, precision strips, and coin blanks, helped it maintain its top line, despite challenges in export markets in the wake of trade protectionism.

For the full year, net profit for FY19 stood at Rs 261 crore, 34% lower compared to FY18, while net revenue was recorded at Rs 8,956 crore, 3% lower than FY18. EBIDTA registered at Rs 900 crore was 21% lower than FY18. The company attributed it to “weakened global trade sentiments influenced by rising trade tensions among US and China and volatility in commodity prices which impacted the overall performance in FY19,” adding “profitability was further impacted on account of sharp jump in graphite electrode prices.”

JSHL managing director, JSHL, Abhyuday Jindal said, “JSHL is India’s only producer of specialized grades of stainless steel products. These offerings, coupled with augmented domestic stainless steel demand, helped the company maintain its revenue despite challenging macroeconomic situations.” The misuse of existing free trade agreements has not only placed domestic industries under competitive disadvantage, but has also widened India’s trade deficit, he added.


“We seek immediate support from the government to safeguard the interests of domestic stainless steel industry, and to prevent India from becoming a dumping ground for substandard and heavily subsidized imports,” Jindal said.