Jindal Stainless Q2 Results: Profit Falls 20%, Margin Contracts
Revenue for Jindal Stainless fell 0.2% to Rs 9,777 crore, with Ebitda margin contracting to 12.1%.
A Jindal Stainless facility. (Source: Company website)
Jindal Stainless Ltd. reported a 20% year-on-year decrease in its consolidated net profit in the second quarter of the current financial year, according to an exchange filing on Thursday.
The firm posted a consolidated net profit of Rs 609 crore for the quarter ended September 2024, compared to Rs 764 crore in the same quarter last year. Consolidated revenue fell 0.2% year-on-year to Rs 9,777 crore from Rs 9,797 crore a year ago.
"The domestic market has always been our focus area, and we expect volume growth to pick up going forward. We also hope for a resolution to the ongoing dumping of subsidised and substandard imports from China and Vietnam, which are disrupting the fair playing field for Indian manufacturers," said Abhyuday Jindal, Jindal Stainless' managing director.
Consolidated Ebitda, or earnings before interest, taxes, depreciation, and amortisation, fell 4% to Rs 1,187 crore. The consolidated Ebitda margin contracted to 12.1% from 12.6% in the same period last year.
The firm had announced the commissioning of its nickel pig iron smelter facility in August 2024 in Indonesia, which was eight months ahead of the scheduled timeline according to the press release. The facility is located in an industrial park in Halmahera Islands, Indonesia.
The company also supplied high-strength, tempered 301L grade austenitic stainless steel for the construction of Vande Bharat sleeper coaches; the prototype was showcased in Bengalurur by the Minister of Railways, Ashwini Vaishnaw.
Shares price of Jindal Stainless closed 0.56% higher at Rs 768.00 apiece on the NSE, compared to a 0.89% decline in the benchmark Nifty 50. The stock has risen 34.24% on a year-to-date basis and 64.10% over the past 12 months. The stock closed 2.25% lower at Rs 746.60 per share.
Out of the 10 analysts tracking the company, nine have a 'buy' rating on the stock, and one suggests a 'hold', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 14.0%.
