Indian stainless steel producer Jindal Stainless Hisar Ltd (JSHL) reported sales for December quarter (Q3) at 191,000mt, up 22pc from the prior year and 23pc from the previous quarter. Sales of JSHL’s Specialty Product Division (SPD) grew by 20pc in Q3 from the previous year. Strong demand from consuming sectors like auto, pipe & tube, metro rail and railway wagon segments led to good sales numbers for JSHL.
Cumulative nine-months sales was reported at 394,000mt, down 13pc from the previous year period. About 92pc of total sales were domestic, rest exports. In Q3, 92pc was sold domestically, and 8pc was exported.
Supply chain normalization after COVID-19 coupled with an uptick in demand from rural and urban centres helped in reviving stainless steel demand in a short span, the company noted.
Basic raw materials for stainless steel products, nickel and chrome, witnessed a rise in average prices in Q3 compared to previous year. In Q3, average nickel prices were around $15,930/mt, up almost $480/mt or 3pc from 2019 levels. Fe chrome prices jumped to Rs68,775/mt, up Rs6,975/mt from the prior year.
Net revenue from operations in Q3 rose 29pc to Rs28.22bn ($0.39bn) from the prior year and up 36pc from the previous quarter. For the nine-month period (Jan-Dec), net revenue from operations dipped 11pc to Rs56.41bn from the prior year. Profit After Tax (PAT) jumped 216pc in Q3 to Rs1.9bn from the prior year and up 71pc from the previous quarter. In nine-months, company reported PAT at Rs2.52bn, up 11pc from the prior year.
Reaction on Union Budget announcement
Jindal Stainless Hissar’s management stated that the decision of government to slash duties on various stainless steel products and suspension of the trade remedial measures would result in free flow of subsidised stainless steel products in domestic market from China which would be a major setback for the Indian stainless steel markets.
The micro, small and medium enterprises are likely to suffer more that cater to about 35pc of the domestic demand. JSL hopes that the government would review this decision and aid Indian manufacturers to compete on a level-playing fields and push for Atmanirbhar or self-reliant mission.
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