Nov. 1, 2020 - Jindal Stainless Ltd has reported a consolidated net profit of Rs 80.60 crore during the second quarter of FY 21, 103% higher than the profit of Rs 39.52 crore reported during the same quarter last year, on the back of of better sales realisations and an exceptional gain of Rs 25 crore on account of favourable forex movement, the company said.
The company reported a net loss of Rs 123.99 crore during the previous quarter of FY 21.
"A better than expected rebound in business sentiment, coupled with JSL's agile response in manufacturing and supply chain adjustments, led to improved financial and operational performance in Q2," said JSL's managing director, Abhyuday Jindal in a statement on Friday.
The company's net revenue was flat at Rs 3,156 crore as against Rs 3,170 crore during the same quarter last year. The earnings before interest, tax, depreciation and amortisation has grown by 11% year-on-year to Rs 352 crore.
JSL's revenue from operations stood at Rs 3,314 crore as against Rs 1,376 crore during the previous quarter which was hit due to the viral pandemic.
"Improved operational performance in Q2 FY21 was also supported bv high demand from two-wheelers, decorative pipes & tubes, and Railways segments, which docked swift resumption to normalcy," the company's statement said.
Demand in hollowware (tableware) and consumer facing segments also picked up in Q2FY21 on the back of the festive season, the company added.
Backed by a gradual recovery in domestic demand throughout the second quarter, JSL's sales volume recovered to pre-COVID levels. Compared to the preceding quarter, sales volume witnessed a surge of 159% at 230,350 tonnes in Q2FY21, the company said.
"Going forward, we expect higher brand penetration in sub-urban markets through strategic partnerships via co-branded products," Jindal said.
The total stainless steel melt production during Jul-Sept quarter stood at 244,469 million tonne equivalent to the pre-COVID level, the company said in a statement.