Jindal Stainless Limited (JSL) and Jindal Stainless Hisar limited (JSHL) have reported a drop in stainless steel sales volume in the June quarter by 7pc and 17pc, respectively, from the prior quarter.
JSL’s sales fell to 238,000mt from the preceding quarter but sales were 168pc higher than the prior-year quarter when the country was reeling under the effects of COVID-19 lockdown. JSHL’s sales volumes in Q2 fell to 151,000mt, 17pc lower than Q4 but 219pc from Q1FY21.
JSHL’s export share was 13pc, while 87pc was sold in the domestic market in Q1. JSL’s export share was 20pc with a domestic sales share of 80pc.
Demand in the country’s railways, process industry, and elevators sectors remained stable, according to JSHL. JSL said its share of exports expanded in Q1 as the domestic industry faced temporary challenges during the second COVID-19 wave.
Raw Material prices
Raw material prices, nickel, and chrome continued to increase in Q1. Average nickel prices were around $12,215/mt in Q1FY21, but in Q1FY22 expanded to $17,359/mt, up by 42pc. Fe-Chrome prices also grew by 42pc to Rs90,650/mt in Q1 from Rs63,875/mt in the same quarter last year.
JSL’s revenue from operations stood at Rs38.41bn ($0.51bn), 204pc higher from a year ago and 1pc up from Q4. Net profit reported by JSL stood at Rs3.06bn, against a loss of Rs1.24bn. JSHL’s revenues jumped 238pc to Rs25.12bn, but 9pc below the prior quarter. Net profit stood at Rs2.4bn against a net loss of Rs0.5bn last year.
The merger between JSL and JSHL was announced in April last year and is progressing well, said the company. The companies are awaiting some formalities in H2 FY22, including NCLT approval. The first motion application was filed before the NCLT on March 17, 2021.
JSL has a major plant in Jajpur, Odisha with an annual capacity of 1.1mn mt. JSHL has an 800,000mt capacity plant in Hisar, Punjab.