Don’t miss the latest developments in business and finance.
Ads
Home / Companies / Results / Jindal Stainless Q1FY25 results: Net profit down 13.11% to Rs 648.06 crore
Jindal Stainless Q1FY25 results: Net profit down 13.11% to Rs 648.06 crore
In a statement, Jindal Stainless managing director Abhyuday Jindal said that it was an enabling resolution to "prepare for, among other things, organic and inorganic growth opportunities"
In a statement, Jindal Stainless managing director, Abhyuday Jindal, said that it was an enabling resolution to “prepare for, among other things, organic and inorganic growth opportunities.” Bloomberg Photo
Jindal Stainless on Tuesday reported a 13.11 per cent year-on-year (Y-o-Y) drop in net profit to ~648.06 crore in the April-to-June quarter (Q1FY25). In the year-ago period, the company’s net profit had stood at ~745.81 crore.
Revenue from operations on a consolidated basis was at ~9,429.76 crore in Q1FY25, down by 7.4 per cent Y-o-Y. Sequentially, revenue from operations was down 0.3 per cent while net profit was up by 29.4 per cent.
The board of Jindal Stainless in-principle approved raising ~5,000 crore through equity and/or debt instruments.
In a statement, Jindal Stainless managing director Abhyuday Jindal said that it was an enabling resolution to “prepare for, among other things, organic and inorganic growth opportunities”.
“The domestic market is expected to expand, with newer sectors anticipated to grow even faster, driving increased demand in the stainless steel industry,” he said.
The ongoing Red Sea issue had extended transit times and freight cost from India to the US and Europe, the company’s two major markets. “The bigger impact in this quarter was availability and cost of containers,” Jindal said in a post-results media interaction. He added that the company was trying to move away from containers and increase supplies in break-bulk.
To counter the Red Sea issue, Jindal Stainless had also increased sales in other markets like Southeast Asia and the Middle East. Jindal said that the company was looking to break into the Japanese market.
Even as exports were impacted, the domestic market saw steady growth. “We are extremely positive on the domestic demand, especially after the Budget outlay on infrastructure, railways and defence. “That is why despite the dip in exports, we delivered high volumes,” Jindal said.
Sales volume of the company was up by 5.4 per cent Y-o-Y.
However, Jindal sees exports picking up. There has been some recovery in Europe compared to last year, he said. The overall guidance on exports, however, remained at 10-15 per cent.
On the government focus on skill development, Jindal said the company would like to partner with the government in upskilling the stainless steel community. On the internship scheme, he said: “We are studying to see how we can utilize it.”