India-based Jindal Stainless’ sales in September quarter rose by 159pc to 230,000mt from the previous quarter. Sales dipped 1pc from the previous year. In H1 (April-September) sales fell by 30pc from the prior year to 319,000mt.
Sales composition comprised 78pc domestic market and 22pc exports in Q2. In H1, domestic sales comprised 75pc, while 25pc was exports.
The company’s healthy performance in Q2 is on the back of rebound in business sentiments and that it made suitable adjustments to supply chain which led to improved financials and healthy sales. The company is focusing on catering to the auto and railways segment.
Raw Material Prices
Nickel prices in Q2 was $14,210/mt on an average, according to Jindal Stainless’ report while in the previous year quarter, prices averaged to $15,540/mt. Chrome prices averaged Rs65,583/mt in Q2 and in the previous year it was around 64,258/mt. Nickel prices have dipped by almost 9pc while chrome is up from the previous year by 2pc.
Financials
The company’s revenues in Q2 stood at Rs31.56bn ($423mn) backed by gradual demand recovery throughout Q2. The company’s net profit rose 88pc to Rs980mn from the prior year as finance costs fell by almost 13pc from the previous year.
($1=Rs74.4)