Jindal Stainless stock nears record level after June 2021 quarter

Jindal Stainless said that Q1FY22 witnessed a further increase in raw material prices and freight costs globally.

Jul 27, 2021 03:07 IST India Infoline News Service

Jindal Stainless
Jindal Stainless garnered EBITDA and profit after tax (PAT) stood at Rs580cr and 271cr respectively. The Company further accelerated its deleveraging strategy during the quarter and reduced its long-term external debt (excluding group company JSHL’s debt) by Rs210cr. Net Lenders’ debt (excluding group company JSHL’s debt) as of June 30, 2021, stood at Rs1445cr. During Q1FY22, interest cost was reduced by 38% over CPLY to Rs81cr.

In its audit report, Jindal Stainless said that Q1FY22 witnessed a further increase in raw material prices and freight costs globally. Ferro Chrome and nickel prices continuously rose globally. Stainless steel demand in Q1FY22 was impacted by state-wise lockdowns due to the second COVID wave. Demand in key segments like Auto, Pipe & Tube segment, Railways and special grades started to stabilize towards the end of the quarter.

The Company increased its share of export sales to cover the temporary challenges in the domestic market during the Covid restrictions/localized lockdowns in Q1FY22.

Outlook for stainless steel demand remains robust on the back of faster vaccination drive, improvement in the availability of liquidity, and overall economic recovery spurred by improved business sentiments and infrastructure stimulus by the government.

At around 3.12 pm, JSL was trading at Rs155 per piece up by 1.5% on Sensex. The stock has touched an intraday high of Rs160.95 per piece that was near the 52-week high of Rs165.70 per piece. 

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