Jindal Stainless Reports 120% Jump in Q2 Net Profit, Stocks Surge 5%

20 Oct 2023 , 11:42 AM

Jindal Stainless saw a 5% increase in its stock price in early trading as investors reacted positively to the company’s Q2FY24 performance. The company reported a 120% increase in consolidated net profit to Rs 764 crore for the September quarter compared to Rs 347 crore in the same period the previous year.

Revenue from operations during the quarter was Rs 9,797 crore, up 12% YoY, with sales volume reaching 543,619 metric tonnes, a nearly 26% YoY increase, driven by robust domestic demand. In H1FY23, the company achieved a consolidated net profit of Rs 1,502 crore, a 75.67% improvement from the Rs 855 crore net profit in H1FY23.

Increased domestic demand for stainless steel, particularly in the auto and consumer-facing segments ahead of the festive season, contributed to the positive results. The Board of Directors approved an interim dividend of 50%, equivalent to Rs 1 per equity share for FY24, with a record date of October 28, 2023.

Following the strong Q2FY24 performance, the stock opened at Rs 466 and reached an intraday high of Rs 474, marking a 5.33% gain. Jindal Stainless is a major stainless steel player in India and globally, with a diverse product range.

The company’s stock has delivered significant returns, with a 242% increase in the last year, and substantial growth in the last three and five years, up 672% and 728%, respectively, from its all-time low of Rs 11.60 apiece.

The stock has consistently delivered positive returns in recent years, with a 91% increase in value from Rs 241 to Rs 460 in the current year.

CRISIL projects a healthy demand outlook for the Indian stainless steel industry, with a 7.5% CAGR for the next 5-10 fiscal years, driven by green metal demand in sectors like railways, process industries, automobiles, and construction.

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