Jindal Stainless Q4 Results: Profit Falls 30%, Misses Estimates
The stainless steel manufacturer's net profit dropped 30% year-on-year to Rs 501 crore in the January-March quarter.
Jindal Stainless Ltd. reported a fall in net profit for the fourth quarter of fiscal 2024, missing analysts' estimates.
The stainless steel manufacturer's net profit dropped 30% year-on-year to Rs 501 crore in the January-March quarter, according to an exchange filing issued on Wednesday. This compares with the Rs 578-crore consensus estimate of analysts polled by Bloomberg.
Revenue from operations declined 3.2% to Rs 9,454 crore during the period, missing estimates.
The board recommended a payment of final dividend of Rs 2 per share for fiscal 2024.
Jindal Stainless Q4 FY24 Highlights (Consolidated, YoY)
Revenue down 3.2% to Rs 9,454 crore versus Rs 9,765 crore (Bloomberg estimate: Rs 9,605 crore).
Ebitda declined 9.5% to Rs 1,035 crore versus Rs 1,144 crore (Bloomberg estimate: Rs 1,061 crore).
Ebitda margin narrowed 80 basis points to 10.9% versus 11.7% (Bloomberg estimate: 11%).
Net profit down 30% to Rs 501 crore versus 716 crore (Bloomberg estimate: Rs 578 crore).
Key Highlights
The company's sales volume rose 12% year-on-year to 5,70,362 tonne during the quarter, the highest-ever recorded for any quarter.
Imports from China continued to surge at ~1,40,000 tonne, a ~20% year-on-year increase.
Margin Contraction
Margin remained under pressure on account of negative inventory valuation due to continuously falling nickel prices.
Key export markets, such as Europe and the US, remained weak.
The Red Sea crisis during the quarter further led to a steep increase in ocean freight and constrained availability of containers, consequently compressing margin.
Key Developments
Jindal Stainless supplied high-strength stainless steel to India’s first Vande Metro train. The company supplied 201LN grade of high-strength stainless steel for the first time, making coaches lighter and more energy-efficient, it said.
Recently, Jindal Stainless had announced major acquisition and expansion plans of Rs 5,400 crore to augment its melting and downstream facilities to reach a capacity of 4.2 million tonne per annum.
This included a 49% partnership in a joint venture for a 1.2 MTPA stainless steel melt shop in Indonesia, expansion in downstream capacity in Jajpur and Odisha, and acquisition of 54% equity stake in Chromeni Steels in Mundra, Gujarat.
Shares of Jindal Stainless closed 3.49% lower at Rs 686.80 apiece, as compared with a 0.08% fall in the Nifty 50.
