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India: Jindal Stainless sales volume recovers to pre-Covid levels

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BigMint Bureau

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31 Oct 2020, 08:46 IST

India: Jindal Stainless sales volume recovers to pre-Covid levels

Jindal Stainless Limited (JSL) has announced its financial results for the quarter ended September 30, 2020. The Company posted an 88% growth in Profit After Tax (PAT) at INR 98 crore in Q2FY21, as compared to corresponding period last year. EBITDA at INR 352 crore witnessed a rise of 11% against Q2FY20, while the net revenue stood at INR 3,156 crore in Q2FY21. With consistent focus on deleveraging, finance cost fell by 13% compared to Q2FY20 to INR 124 crore in Q2FY21.

Streamlining production, inventory, and supply chain management according to the emerging customer needs helped JSL post strong operational performance in Q2FY21. The total stainless steel melt production during Q2FY21 stood at 244,469 t, nearly equivalent to the pre-COVID level.

Improved operational performance in Q2FY21 was also supported by high demand from two-wheelers, decorative pipes & tubes, and Railways segments, which docked swift resumption to normalcy.

An exceptional response to JSL's co-branded products in the pipe & tube segment last year induced the launch of second phase of the co-branding initiative as 'Jindal Saathi 2.0' during the second quarter. The second phase of this co-branding campaign covers even larger geography and remote markets.

On a half yearly basis, H1FY21 PAT stood at INR 11 crore while EBITDA was INR 430 crore. Sales volume was recorded at 319,164 t and net revenue of the company was INR 4,418 crore in H1FY21.

Commenting on the performance of the Company, Managing Director, JSL, Mr.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 Ql. 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."