Jindal Stainless Hisar (JSH) sales volumes were 155,000mt in Q2, up 9pc from the prior year and up 228pc from Q1 aided by a recovery in demand from the auto sector. Sales volume has returned to pre-COVID levels in Q2, says the company. Jindal is looking forward to government spending on public infrastructure as the next big boost for the stainless-steel sector.
Auto sector turnaround in both passenger vehicles and two-wheeler segments aided sales volumes for JSH. Retail demand picked up in Q2. The kitchen and tableware business segment jumped five-fold over the previous quarter, according to the company.
Raw Material Prices
Nickel prices in Q2 was $14,210/mt on an average, according to Jindal Stainless’ report while in the prior year Q2 prices averaged to $15,540/mt. Chrome prices averaged to Rs65,583/mt in Q2 from 64,258/mt in Q2 FY2020. Nickel prices have dipped by almost 9pc while chrome is up by 2pc from the prior year period.
Financials
The company’s revenues in Q2 stood at Rs20.76bn ($279mn) backed by gradual demand recovery through Q2 with better sales volumes, up 5pc from the prior year and 180pc from the preceding quarter. The company’s net profit rose 35pc to Rs1.11bn from the prior year. In the previous quarter the company posted a net loss of Rs500mn. In Q2, finance cost registered a decline of 15pc from the previous year to Rs650mn.
Jindal Stainless (Hisar) is the largest specialty stainless steel producer in India with a diversified value-added product portfolio. The company operates an integrated stainless-steel plant at Hisar, Haryana. JSHL has a total melting capacity of 0.8mn mt per annum.
($1=Rs74.2)