Jindal Stainless Reports Strong Results for Oct-Dec Quarter
Jindal StainlessJindal Stainless

Jindal Stainless Reports Strong Results for Oct-Dec Quarter

Jindal Stainless Limited announced the financial results for October-December 2020 quarter. Jindal Stainless said “A V shaped recovery in stainless steel

Jindal Stainless Limited announced the financial results for October-December 2020 quarter. Jindal Stainless said “A V shaped recovery in stainless steel demand in the domestic markets bolstered JSL's sales volume to 250,562 tonnes in Q3of FY21. The Indian economy gained momentum and registered a faster than expected recovery after the peak COVID-19 period in 2020. The third quarter witnessed healthy revival in end-user segments like automotive, pipes & tubes, and industrial fabrication. Backed by R&D efforts to indigenize various stainless steel grades in the automotive sector, JSL was able to capitalize on the demand growth in the two-wheeler and passenger vehicle segments. Aided by the second wave of its nationwide co-branding initiative Jindal Saathi, the Company registered nearly 40% growth in the ornamental pipe & tube segment during the quarter. Sales in the Hollowware segment grew by about 40% in Q3FY21 as compared to previous quarter. JSL's sales in the railway wagon and metro rail segments also remained strong during the quarter.”

Q3FY21 Highlights - Standalone performance:

Sales volume registered at 250,562 tonnes, up by 5% YoY

Domestic Sales 85% up 13%

Exports 15% down 27%

Revenue at INR 3,452 crores, up by 9% YoY

EBITDA at INR 445 crores; EBITDA margin at 12.9%

PAT at INR 152 crores; PAT margin at 4.4%

Q3FY21 Highlights - Consolidated performance:

Revenue stood at INR 3,585 crores, up by 9% YoY

EBITDA at INR 473 crores; EBITDA margin at 13.2%

PAT at INR 170 crores; PAT margin at 4.7%

Jindal Stainless said “The global stainless steel market saw escalation of raw material prices throughout the quarter. Over the six-month period of July-December 2020, Nickel prices jumped by about40%, while prices of Molybdenum, Copper and Ferrous Scrap grew by nearly 27%, 24%, and 45% respectively. Additionally, the shipping cost for imported raw materials went up by 30-35% in comparison to the pre-COVID period, resulting in higher landed cost of raw-materials. Steadily increasing input costs had a direct bearing on the prices of stainless steel. With imports constituting nearly 27% of domestic stainless steel consumption, and input materials imported from global sources, the domestic prices of finished goods remained inevitably linked with the prevailing international prices.”

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