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Jindal Stainless Reports 13.11% Dip in Q1FY25 Profit
ECONOMY & POLICY

Jindal Stainless Reports 13.11% Dip in Q1FY25 Profit

Jindal Stainless announced a 13.11% year-on-year (Y-o-Y) decline in net profit to ?6.48 billion for the April-to-June quarter (Q1FY25), down from ?7.46 billion in the corresponding period last year. The company's revenue from operations on a consolidated basis stood at ?94.30 billion, marking a 7.4% Y-o-Y decrease. Sequentially, revenue saw a slight dip of 0.3%, while net profit increased by 29.4%.

The board of Jindal Stainless has given in-principle approval to raise ?50 billion through equity and/or debt instruments. Managing Director Abhyuday Jindal stated that this resolution is aimed at preparing the company for various growth opportunities, both organic and inorganic.

?The domestic market is expected to expand, with newer sectors anticipated to grow even faster, driving increased demand in the stainless steel industry,? Jindal remarked.

The ongoing Red Sea issue has extended transit times and increased freight costs from India to the US and Europe, the company?s primary markets. ?The bigger impact this quarter was the availability and cost of containers,? Jindal explained during a media interaction post-results. The company is transitioning from container shipping to break-bulk to mitigate these challenges.

To counteract export disruptions, Jindal Stainless has increased sales in Southeast Asia and the Middle East and is exploring entry into the Japanese market. Despite the export challenges, the domestic market has shown steady growth, bolstered by government infrastructure investments. ?We are extremely positive on domestic demand, especially following the Budget outlay on infrastructure, railways, and defence,? Jindal noted.

Sales volumes for the company rose by 5.4% Y-o-Y. Jindal remains optimistic about export recovery, particularly in Europe, although the overall export guidance stays at 10-15%.

Jindal also emphasized the company's interest in partnering with the government on skill development initiatives and is exploring how to leverage government internship schemes for upskilling the stainless steel community.

Jindal Stainless announced a 13.11% year-on-year (Y-o-Y) decline in net profit to ?6.48 billion for the April-to-June quarter (Q1FY25), down from ?7.46 billion in the corresponding period last year. The company's revenue from operations on a consolidated basis stood at ?94.30 billion, marking a 7.4% Y-o-Y decrease. Sequentially, revenue saw a slight dip of 0.3%, while net profit increased by 29.4%. The board of Jindal Stainless has given in-principle approval to raise ?50 billion through equity and/or debt instruments. Managing Director Abhyuday Jindal stated that this resolution is aimed at preparing the company for various growth opportunities, both organic and inorganic. ?The domestic market is expected to expand, with newer sectors anticipated to grow even faster, driving increased demand in the stainless steel industry,? Jindal remarked. The ongoing Red Sea issue has extended transit times and increased freight costs from India to the US and Europe, the company?s primary markets. ?The bigger impact this quarter was the availability and cost of containers,? Jindal explained during a media interaction post-results. The company is transitioning from container shipping to break-bulk to mitigate these challenges. To counteract export disruptions, Jindal Stainless has increased sales in Southeast Asia and the Middle East and is exploring entry into the Japanese market. Despite the export challenges, the domestic market has shown steady growth, bolstered by government infrastructure investments. ?We are extremely positive on domestic demand, especially following the Budget outlay on infrastructure, railways, and defence,? Jindal noted. Sales volumes for the company rose by 5.4% Y-o-Y. Jindal remains optimistic about export recovery, particularly in Europe, although the overall export guidance stays at 10-15%. Jindal also emphasized the company's interest in partnering with the government on skill development initiatives and is exploring how to leverage government internship schemes for upskilling the stainless steel community.

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