Jindal Stainless (JSL) has posted a 34.5% rise in consolidated net profit at Rs 691 crore for the third quarter ended December, beating Street estimates, mainly driven by growth in the domestic market.
The country’s largest stainless steel manufacturer had posted a net profit of Rs 513 crore for the same quarter last fiscal. During the quarter under review, JSL’s revenue rose 1% to Rs 9,127 crore from Rs 9,063 crore recorded during the same period of last year. A consensus estimate by Bloomberg analysts expected the company to post a net profit of Rs 667 crore on revenue of Rs 8,988 crore and an EBITDA of Rs 1,148 crore.
“Our domestic market has been supporting us and it has been very strong, and all sectors we are present in, we have seen good volume and growth coming in. Sectors such as Railways, auto, building construction and utensils did well,” Jindal Stainless MD Abhyuday Jindal said.
However, sales volume dipped on a standalone basis by 6% quarter-on-quarter to 512,015 metric tonne. JSL also received board approval to acquire the remaining stake in its Spain subsidiary Iberjindal. At present, it holds 65%. “On the valuation front, discussions are on… We expect the deal to be concluded in the next two-three months,” CFO Anurag Mantri said.
The company also got board approvals to divest its 26% stake in Jindal Coke. “Since this is not a directly related business and it is a coal-based business, which is low on ESG score, we think it is the right time to divest it,” Mantri said.
The firm expects its Q4 exports to be impacted due to the ongoing geopolitical issues, including the Red Sea crisis, and the rise in ocean freights. The company had a target of 15% of sales from exports, which is “unlikely” now, Jindal said, adding, it might only reach 10-12%.