Mumbai: Jindal Stainless Ltd (JSL) on Tuesday posted a 12 percent fall in consolidated net profit to Rs 646.07 crore during June quarter, mainly on account of lower income. It had clocked Rs 737.58 crore net profit in the year-ago period, media reported, citing an exchange filing.
Total income for the April-June 2023-24 period fell to Rs 9,480.50 crore from Rs 10,227.20 crore in the same quarter the previous year, PTI reported.
Expenses decreased to Rs 8,593.13 crore from Rs 9,279.15 crore. The net profit for April-June FY25 was 29 percent higher compared to Rs 500.65 crore in January-March FY24.
In a post-earnings call, JSL MD Abhyuday Jindal noted that due to stagnant growth in the US and EU markets, the companys export volumes remained flat quarter-on-quarter, the report said.
He also mentioned that the ongoing Red Sea issue has led to longer transit times and higher freight costs from India to Western markets, compounded by a shortage of containers, which has further impacted exports.
Jindal highlighted that the company sources most of its raw materials from nearby shores and domestic suppliers, helping to mitigate cost and time risks from the crisis.
However, he acknowledged that cheap imports from China and Vietnam continue to threaten the domestic industry.
The companys board has given in-principle approval to raise up to Rs 5,000 crore through various instruments in domestic and foreign markets, in one or more tranches, pending shareholders and regulatory approvals.
The board also approved a notice to seek members approval for fund-raising via a special resolution at an Extra-ordinary General Meeting.
In a separate statement, Jindal Stainless announced it had supplied special stainless steel for the production of 100 Made in India freight wagons for Mozambique.
During the quarter, the company invested approximately Rs 715 crore to enter a joint venture for developing and operating a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 million tonnes per annum.
Additionally, the company allocated around Rs 1,900 crore for the expansion of its downstream lines and Rs 1,450 crore for upgrading infrastructural facilities in Jajpur, Odisha.
During this period, Jindal Stainless also completed the total acquisition of Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill in Mundra, Gujarat, for over Rs 1,600 crore.
This amount includes payments for equity transfer and shareholder debt.
