JSL profit slides 30% to ₹501 cr as nickel prices fall, misses estimates
Jindal Stainless Ltd (JSL), the Abhudhay Jindal-led company on Wednesday, reported a 30% year-on-year (y-o-y) fall in consolidated net profit to ₹501 crore in the March quarter owing to compromised margins amid falling nickel prices and increasing shipping costs in light of the ongoing Red Sea Crisis. The company's consolidated net revenue stood at ₹9,454 crore, a 3% y-o-y fall from ₹9,765 crore during Q4FY23. The results missed Bloomberg analyst estimates of ₹9,605.2 crore and ₹577.50 crore for revenue and net profit, respectively.
The company recorded a 10% y-o-y fall in earnings before interest, tax, depreciation, and amortisation (Ebitda) at ₹1,035 crore during the quarter. Margins, the company added, remained under pressure on account of negative inventory valuation due to continuously falling nickel prices. Around 40-50% of the company’s raw material cost can be attributed to nickel, it said.
Also Read: Jindal Stainless to invest ₹5,400 cr to expand “We plan to increase the volumes by 20-25% in the current fiscal (FY25), so we will be taking our sales volumes up to 2 to 2.5 MTPA. As we remain very bullish on domestic demand, all sectors, and expect it to grow between 8-10% during the fiscal. Our Ebitda per tonne target for the year is around ₹18,000-20,000," said Abhyuday Jindal, managing director, JSL.
The company’s Ebitda per tonne for FY24 stood at ₹18,558. JSL’s standalone sales volume for the quarter stood at 570,362 tonnes, up 12% YoY, buoyed by the government’s push for various infrastructure projects such as Gati Shakti, hence demand for stainless steel grew consistently throughout the quarter. There were robust sales across the automobile, wagons, coaches, metro, pipes & tubes, and other segments, the
. Read more on livemint.com
