Jindal Stainless shares gain over 5% as net profit rises 120% in Q2
Jindal Stainless jumped over 5% in early trade on Friday, outperforming the overall market's weakness after investors reacted positively to the company's Q2FY24 performance. The company, which released its September quarter numbers post-market hours on Thursday, reported a 120% jump in its consolidated net profit to ₹764 crore as compared to a net profit of ₹347 crore recorded in the same period of last year. Its revenue from operations during the September quarter came in at ₹9,797 crore, a jump of 12% YoY.
The company’s sales volume for the second quarter of FY24 stood at 543,619 metric tonnes (MT), up by nearly 26% year-on-year (YoY), owing to robust domestic demand. In H1FY23, the company achieved a consolidated net profit of ₹1,502 crore, reflecting a 75.67% improvement from the ₹855 crore net profit in H1FY23. Domestic demand for stainless steel continued to rise.
Ahead of the upcoming festive season, the company’s sales in the auto segment—besides other consumer-facing segments—saw an uptick, the company said in its earnings report. Meanwhile, the Board of Directors approved an interim dividend payment of 50% equivalent to ₹1 per equity share (face value of ₹2 each) for FY24. The record date for determining the entitlement of members for the purpose of payment has been set as October 28, 2023.
Following the stellar Q2FY24 performance, the stock opened the Friday session at ₹466 apiece, up from the previous closing price of ₹450, and surged further to reach an intraday high of ₹474, marking a 5.33% gain. Jindal Stainless is among the top stainless steel players in India and among the top five stainless steel makers globally (excluding China). The company’s product range includes stainless steel slabs, blooms,
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