Jindal Stainless Q1 Profit Down 12% to Rs 646 Cr

New Delhi, Jul 30 (PTI) Jindal Stainless Ltd (JSL) on Tuesday posted 12 per cent fall in consolidated net profit to Rs 646.07 crore during June quarter, mainly on account of lower income.

It had clocked Rs 737.58 crore net profit in the year-ago period, the company said in an exchange filing.

Total income fell to Rs 9,480.50 crore from Rs 10,227.20 crore in April-June 2023-24. Expenses were at Rs 8,593.13 crore as against Rs 9,279.15 crore in the same quarter a year ago.

Net profit in April-June FY25 was 29 per cent higher as compared to Rs 500.65 crore in January-March FY24.

In a post earnings call, JSL MD Abhyuday Jindal said that due to stagnant growth in the US and EU markets, the export volumes of the company have remained flat on a QoQ level.

The ongoing Red Sea issue extended transit times and freight cost from India to the western markets, and paucity of containers further affected exports, he said.

Jindal further said that since the company sources most of its raw materials from nearby shores and domestic suppliers, the company was largely able to mitigate cost and time risks arising from the crisis.

Cheap imports from China and Vietnam continue to pose threat to the domestic industry, he added.

The board of the company also gave its in-principle approval to raise up to Rs 5,000 crore through various instruments in domestic and foreign markets, in one or more tranches.

The proposal remains subject to shareholders' and other regulatory approvals.

The board also approved a notice to seek requisite members' approval for raising of funds, by way of special resolution through Extra-ordinary General Meeting.

In a separate statement, Jindal Stainless said it supplied special stainless steel to produce 100 ‘Made in India' freight wagons for Mozambique.

During the quarter, with an investment of approximately Rs 715 crore, the company entered a JV to develop and operate a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 million tonne per annum.

The company also set aside around Rs 1,900 crore and Rs 1,450 crore for the expansion of its downstream lines and upgradation of infrastructural facilities respectively, in Jajpur, Odisha.

During the period, the company completed total acquisition of Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, for over Rs 1,600 crore, comprising payment towards equity transfer and payment of shareholders' debt.