Jindal Stainless posts net profit of Rs 293 cr in Q4 of FY’21

During the Q4 of FY'21 Jindal Stainless' total income rose to Rs 3,926.30 crore as against Rs 3,107.34 crore a year ago
Jindal Stainless posts net profit of Rs 293 cr in Q4 of FY’21

New Delhi: The Board of Directors of Jindal Stainless Limited (JSL) on Friday approved the financial results of the company for Q4 of FY 2020-21. A strong recovery in the domestic stainless steel demand continued in the January-March period and helped sales volume grow by 15 percent over the corresponding period last year (CPLY) to 255,099 tonnes in Q4 of FY21. JSL's EBITDA and profit after tax (PAT) stood at Rs 521 crores and 265 crores respectively. Continuing with the deleveraging, the company could further reduce its long term external debt by Rs 129 crores during the quarter, which stood at Rs 1,530 crores. During the period the interest cost reduced by 36 percent over CPLY to Rs 92 crores.

The fourth-quarter demand was buoyed by segments like Auto, and a healthy revival in demand from the Pipe & Tube segment, along with Railways & allied infrastructure, including the metro segment. The demand for special grades in Q4 of FY21 registered growth due to localisation efforts by the government and company's initiatives for innovation. With further push on indigenous production and expected economic recovery, healthy demand is likely to be generated in the future as well. Demand from segments like Elevators and Lifts, and Hollowware also remained strong and is likely to continue.

On the global scale, stainless steel production was impacted by the onset of the pandemic, and stood at 50.90 million tonne in CY2020, registering a decline of 2.5 percent over CPLY. The stainless steel melt production in India for CY2020 was at 3.17 million tonnes, registering a decline of 19 percent over CPLY. Q4FY21 also witnessed further increase in raw material prices globally, wherein Scrap, Nickel, Copper and Ferro Chrome, etc. rose significantly over the Q3FY21 prices. The rally in raw material prices eventually pushed up prices of finished goods globally. This phenomenon was also visible for other commodities, including metal, due to pent up demand and economic recovery. However the company maintained its focus on meeting domestic demand, which led to an increase in the overall proportion of domestic sales.

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Financial performance on a yearly basis

On a yearly basis, FY21 standalone PAT stood at Rs 428 crore, while EBITDA was INR 1396 crores. Sales volume was recorded at 824,825 tonnes and net revenue of the company was Rs 11,679 crore. With a continuous focus on deleveraging, despite the challenging business environment, the company managed to reduce its total external debt (including short term debt) by Rs 906 crore, which stood at Rs 1,849 crore as on March 31. This also resulted in a significant saving in the interest cost, which fell by 18 percent over FY20 to Rs 464 crore.

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