New Delhi: Jindal Stainless Limited (JSL) has reported a net profit of Rs. 271 crore in the June quarter against a loss of Rs.87 crore in the corresponding quarter of last financial year (Q1FY21). Net Revenue of the company grew by 204 percent to Rs. 3841 crore against Rs. 1262 crore in Q1 of FY21. The strong performance is owing largely to a low base effect.
On the other hand, the company has reported a consolidated net profit of Rs. 306 crore against a loss of 124 crore. Consolidated revenue also grew by 193 percent to Rs. 4033 crore against a Rs.1376 crore in Q1FY21.
The Company further accelerated its deleveraging strategy during the quarter and reduced its long-term external debt (excluding group company JSHL’s debt) by INR 210 crore. Net Lenders’ debt (excluding group company JSHL’s debt) as on June 30, 2021 stood at INR 1445 crore. During Q1FY22, interest cost reduced by 38% over CPLY to INR 81 crore.
Q1FY22 witnessed further increase in raw material prices and freight cost globally. Ferro Chrome and nickel prices continuously rose globally. Stainless steel demand in Q1FY22 was impacted by state-wise lockdowns due to second COVID wave. Demand in key segments like Auto, Pipe & Tube segment, Railways and special grades started to stabilize towards the end of the quarter. Outlook for stainless steel demand remains robust on the back of faster vaccination drive, improvement in availability of liquidity, and overall economic recovery spurred by improved business sentiments and infrastructure stimulus by government.