Jindal Stainless Limited H1FY19 revenue surges by 35%
Deepthi | Myequity news | Date : 26-10-2018 20:50:00 IST
The Board of Directors of Jindal Stainless Limited (JSL) took on record the unaudited financial results of the company today.
The revenue of the company continued to grow both on a quarterly and half-yearly basis, by 18% and 35% over corresponding period last year (CPLY) respectively.
The company built up inventory in Q1 to support a planned maintenance shutdown in Q2. This, along with steep hike in nickel prices during Q1, impacted sales of finished inventory in Q2, thereby causing inventory losses. These factors slowed down the overall EBIDTA for Q2FY19.
The production volumes for Q2 and H1 FY19 stood at 0.2 MT and 0.46 MT, registering a respective increase of 2% and 22% over CPLY. This was in tune with the company’s target to increase its annual capacity from the present level of 0.8 MT to 1.1 MT by the end of FY19.
On a sequential basis, the company registered a marginal dip (-2%) in revenue, from Rs 3,147 crore in Q1FY19 to Rs 3,081 crore in Q2FY19. Exceptional loss of Rs 53 crore, primarily on account on mark-to-market forex loss, resulted in a net loss of Rs 36 crore in Q2FY19.
Commenting on the performance of the quarter, Managing Director, JSL, Abhyuday Jindal,
said, “Our Q2 results are a reflection of the cyclical nature of core sector, including its determinants such as input prices and forex volatility. Our focus is to increase annual production by 15% in the next two years to cater to the growing needs of domestic markets. Our product mix is well distributed among different segments, and all of them are showing a healthy growth rate. Besides, we are increasingly moving towards more value added products in railways, automobiles, and other sectors. We are also increasing our presence in the ferretic segment, which will balance the impact of raw material price volatility. This portfolio enhancement, clubbed with gradually growing demand, will help in improved operating performance going forward.”
About Jindal Stainless Limited
Founded by Shri O.P Jindal in 1970, Jindal Stainless is one of the largest stainless steel conglomerates in India and ranks amongst the top 10 stainless steel conglomerates in the world. Jindal Stainless Group has an annual crude steel capacity of 1.8 MTPA and the group has an annual turnover of US $ 3.1 billion (as on March'18).