Jindal Stainless shares surge 10% after Q2 profit jumps 120%

Shares of stainless steel major Jindal Stainless Ltd were in focus on Friday, a day after the company reported a 120% year-on-year surge in its consolidated profit to ₹764 crore in the September quarter of the current fiscal as against ₹347 crore in the same period last year.

Following Q2 results, the share price of the company surged 10.02% to hit an intraday high of ₹493.30 apiece on the BSE, as against the previous closing price of ₹448.30. At the time of reporting, shares of Jindal Stainless were trading 5.78% higher at ₹474.50. At present, the share price of the company is trading 261.8% higher than the 52-week low of ₹130.80, which the company touched on October 20 last year. During the session, the company’s market capitalisation stood at ₹38,989.63 crore, with 41,583 shares exchanging hands on the BSE as against the two-week average of 0.26 lakh shares.

In the September quarter, the company's revenue from operations stood at ₹9,797 crore, up 12% year-on-year (YoY), as against ₹8,751 crore in the corresponding period of the previous year. During the quarter under review, the EBITDA (earnings before interest, tax, depreciation and amortisation) surged by 80% YoY to ₹1,231 crore as against ₹685 crore in the same period last year.

"Our domestic sales are up by 15% YoY, buoyed by the government's push for stainless steel in strategic sectors. As we wait for the National Stainless Steel Policy, we are confident that the per capita consumption of stainless steel in India will increase from the current 2.8 kg in the coming years. Chinese imports have increased by nearly 55% YoY. This highlights the unchecked dumping of subsidised and substandard Chinese products in the Indian market. We hope the government will take notice of the continuous and rampant imports by China, which is hurting the sector, especially the MSMEs, as well the government's vision of an Atmanirbhar Bharat," says Abhyuday Jindal, MD, Jindal Stainless.

According to the company, the company's net debt for the quarter was recorded at ₹2,149 crore and the net debt-to-equity ratio was maintained at ~0.2.

The Board of Directors of the company has approved the payment of an interim dividend of ₹1 per equity share (face value of ₹2 each) for FY24. The record date has been set as October 28, 2023. The dividend should be paid on or before November 17, 2023, says the company. The aggregate payout will be nearly ₹82.34 crore.

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