Jindal Stainless Q2 net doubles to Rs.80.64cr

Jindal Stainless reported virtually flat top line sales for the Sep-20 quarter at Rs3,314.13cr.

Oct 30, 2020 05:10 IST India Infoline News Service

Jindal Stainless reported virtually flat top line sales for the Sep-20 quarter at Rs3,314.13cr. However, the company managed a turnaround at a time when the total steel sales had touched a new low in the Jun-20 quarter. Now sales are back to pre-COVID levels.


The operating profits for the quarter ended Sep-20 was 14.95% higher on a yoy basis at Rs241.71cr. The net profits for the Sep-20 quarter were, however, sharply higher by 104.05% at Rs80.64cr. This was largely on the back of lower raw material costs.


This had an overall impact on the margins of Jindal Stainless. For the Sep-20 quarter, the operating profit margins or OPM was up 90 bps to 7.29% in the quarter. However, the net profit margins or NPM for the quarter more than doubled to 2.43%.
Financial highlights for Sep-20 compared yoy and sequentially


Jindal Stainless
Rs in Crore Sep-20 Sep-19 YOY Jun-20 QOQ
Revenues 3,314.13 3,291.05 0.70% 1,376.06 140.84%
Operating Profit 241.71 210.27 14.95% -38.65 -725.38%
Net Profits 80.64 39.52 104.05% -123.99 -165.04%
Diluted EPS (Rs) 1.68 0.79 -2.50
OPM 7.29% 6.39% -2.81%
Net Margins 2.43% 1.20% -9.01%
 


Key takeaways from the Sep-20 quarter results

  • The Sep-20 quarter has shown a sharp recovery from the lows of Jun-20 and the top line is back to the pre-COVID levels. That is positive for the company as lower costs are helping along the way.

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