New Delhi, Oct 30 | Jindal Stainless Limited (JSL) on Friday announced its financial results for the quarter ended September 30, 2020. The company posted an 88 per cent growth in net profit at Rs 98 crore in Q2FY21, as compared to the corresponding period of last year.
EBITDA at Rs 352 crore witnessed a rise of 11 per cent over the corresponding period of last year (CPLY), while the net revenue stood at Rs 3,156 crore in Q2FY21.
With focus on deleveraging, finance cost fell by 13 per cent over the CPLY to Rs 124 crore in Q2FY21.
Exceptional gains for the quarter stood at Rs 25 crore on account of favourable forex movement.
Backed by a gradual recovery in domestic demand throughout the second quarter, JSL’s sales volume recovered to pre-Covid levels. Compared to the preceding quarter, sales volume witnessed a surge of 159 per cent at 230,350 tonnes in Q2FY21.
Commenting on the performance of the company, JSL Managing Director, Abhyuday Jindal, said, “A better than expected rebound in business sentiment, coupled with JSL’s agile response in manufacturing and supply chain adjustments, led to improved financial and operational performance in Q2.
“Aligned with market needs, we kept innovating and expanding our product basket to cater to customers in auto and railway segments. Going forward, we expect higher brand penetration in sub-urban markets through strategic partnerships via co-branded products.”
The company’s board also approved to constitute a committee of board of directors to explore and evaluate various options of reorganisation/consolidation of the stainless steel businesses of the company and of other group entities.
The total stainless steel melt production during the July-September quarter stood at 244,469 MT, nearly equivalent to the pre-Covid levels.
Improved operational performance in Q2FY21 was also supported by high demand from two-wheelers, decorative pipes and tubes, and Railways segments, which clocked swift resumption to normalcy.
Demand in hollowware (tableware) and consumer facing segments also picked up in Q2FY21 on the back of the festive season.