New Delhi: Jindal Stainless (JSL) today reported 38% drop in Profit After Tax (PAT) at Rs 32 crore in the fourth quarter of 2018-19 mainly due to an incremental provision for Rs 57 crore towards debt restructuring.
“The consortium of CDR (Corporate Debt Restructuring) lenders has agreed to allow CDR exit for the Company with effect from March 31, 2019, subject to requisite approvals from their respective competent authorities. The aggregate liability of recompense as on March 31, 2019 was determined at Rs 191 crore as per extant guidelines. The Company made an incremental provision for Rs 57 crore in Q4FY19 vs Rs 27 crore in Q3FY19. With this, the entire recompense liability as on March 31, 2019 is fully provided for. Accordingly, the PAT dipped by 38%” JSL said in a statement.
The annual sales volume and net revenue grew by 9% and 17% respectively. Despite the pressure on margins exerted by subsidized imports, JSL could manage to maintain its leadership position in the domestic stainless steel market during FY 18-19. However, EBIDTA margins continued to be under pressure, which adversely impacted Company’s profitability. The net worth of the Company stood at Rs 2,475 crore, up by around 5% over FY 17-18.