Jindal Stainless Q3 Results: Profit Slips 5.4% But Beats Estimates
Jindal Stainless' revenue rose 8.5% to Rs 9,907 crore in the quarter ended December.
Jindal Stainless Ltd.'s consolidated net profit fell 5.4% year-on-year in the third quarter of the current fiscal, but stood ahead of analysts' estimates.
The company posted a bottom line of Rs 654.8 crore in the quarter ended December, according to an exchange filing on Wednesday. Analysts polled by Bloomberg had a consensus estimate of Rs 614 crore.
Jindal Stainless Q3 FY25 Highlights (Consolidated, YoY)
Revenue up 8.5% at Rs 9,907 crore versus Rs 9,127 crore (Bloomberg estimate: Rs 9,749 crore).
Ebitda declines 3.1% to Rs 1,207 crore versus Rs 1,246 crore (Estimate: Rs 1,189 crore).
Margin narrows 150 basis points to 12.2% versus 13.7% (Estimate: 12.2%).
Net profit down 5.4% at Rs 654.8 crore versus Rs 692.3 crore (Estimate: Rs 614 crore).
"Recent times in the Indian steel and stainless steel industry have been witness to the adverse effects of subsidised dumping of inferior quality products by countries having surplus capacities. Our third quarter performance in the current fiscal is a testimony to our overall competitiveness even in the face of rising imports, and our adequacy in meeting domestic demand across all sectors," said Abhyuday Jindal, the company's managing director.
Amid pressure of imports in the domestic market, and a depressed export market, the company managed to grow its sales volume to 5,87,658 tonnes in the December quarter, marking a 15% year-on-year rise. On a sequential basis, the sales volumes increased by 4.1%, according to a press release.
Domestic sales increased 20% YoY to 5,37,747 tonnes, whereas exports fell by 22% in the same period. A continuous decline in stainless steel prices in global markets and low-priced imports pressured margins in both domestic and export markets, thereby affecting profitability during the quarter, the company said.
As export volumes dipped, Jindal Stainless tried to strengthen its presence through niche offerings to global customers, especially in lifts and elevators, automobile, white goods and metro segments, the release added.
The company is ramping up its facilities to reach 4.2 million tonnes of annual melt capacity in fiscal 2027, it further said.
Shares of Jindal Stainless closed 3.6% higher at Rs 637.4 apiece on the BSE, compared to 0.83% rise in the benchmark Sensex.
