Jindal Stainless Hissar Limited’s (JSHL) sales volumes in January-March quarter (Q4) was reported at 182,474mt, up 23pc from the prior year quarter. The company attributed the high sales volumes to strong revival of domestic demand for stainless steel.
Demand from auto segment, railways and wagon and metro rails had picked up in the quarter, along with sustained improvement in Indian economic activities. The company is also planning to expand their special product division.
Stainless steel raw material prices have been rallying driven by pent-up demand and the economic stimulus backed commodity prices. Scrap, nickel, copper and ferro copper prices had surged significantly in Q4 compared to the prior quarter, JSHL noted. Strong momentum in raw material prices have hurt finished stainless goods globally, according to JSHL.
Apart from the jump in raw material prices, logistical challenges caused by international transport bottlenecks also added to the input price hike.
JSHL’s share of export sales volumes was 8pc, the rest being domestic share in Q4. In the same quarter in 2020, export share was 11pc and remaining waDomestic demand has increased in Q4FY21.
Standalone net revenue for JSHL in Q4 jumped 36pc to Rs27.58bn ($0.38bn). For the entire fiscal, net revenues stood at Rs84bn, up 1pc from the previous fiscal. Net profit in Q4 stood at Rs2.26bn, up 141pc from the previous year quarter. For FY21, net profit accumulated was Rs4.78bn, up 49pc from the prior year fiscal.
($1=Rs73.17)