Jindal Stainless reports Rs 271-cr profit for Q1; announces expansion plan

Jindal Stainless Ltd (JSL) returned to black in the April-June quarter, posting a net profit of Rs 271.42 crore on the back of a significant rise in income.

The stainless steel maker also announced a Rs 2,150 crore investment plan to double the capacity of its Jajpur unit to 2.10 MTPA, to cater to the future growth in domestic as well as international markets.

During the year-ago quarter, the company had posted a loss of Rs 86.50 crore.

Its total income in the quarter under review rose to Rs 3,850.89 crore from Rs 1,271.25 crore in the year-ago period. The company's expenses were at Rs 3,433.27 crore in April-June 2021 as against Rs 1,410.04 crore a year ago.

The board of the company also approved a proposal for enhancing the capacity of the Jajpur facility in Odisha from 1.10 MTPA to 2.10 MTPA (million tonne per annum) at an investment cost of Rs 2,150 crore, JSL said.

The proposed capacity would be added by financial year 2022-23, the company said adding the mode of financing to expand the unit will be through a combination of internal accruals and debt.

In a separate statement, JSL Managing Director Abhyuday Jindal said, Our plan for the near future is unleashed today; we are going to double our melt capacity in the next 18 months. The expansion will strengthen our ability to serve domestic and international customers across different market segments. With the post pandemic recovery, rigorous internal efficiencies, ongoing merger, and slated expansion plansJSL is geared to maximise the value for all its stakeholders.