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Jindal Stainless Hisar Q3 profit falls 11% to Rs 80 crore

JSHL’s net revenue for the quarter under review came down by 2% at Rs 2,191 crore.

, ET Bureau|
Last Updated: Feb 14, 2020, 09.33 PM IST
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Mumbai: Jindal Stainless (Hisar) Limited (JSHL) reported a consolidated net profit of Rs 80 crore for the quarter, a 11% decline from Rs 94 crore yoy due to a steep surge in import of stainless steel in the market in the year 2019, said the company.

Company’s standalone net profit stood at Rs 60 crore in Q3FY20 as compared to Rs 55 crore in the corresponding period last year (CPLY), registering an increase of 10%.

“As the industry continues to face the deluge of imports, margins still remain under pressure. Going ahead, we will enhance our overseas market footprint as we are exploring opportunities to expand customer base in new geographies along with development of a few new grades,” said JSHL Managing Director Abhyuday Jindal

JSHL’s net revenue for the quarter under review came down by 2% at Rs 2,191 crore. The Company reported an EBITDA of Rs 210 crore.

“EBITDA was maintained at healthy levels through a strong product mix, coupled with focus on value-added grades and internal process optimisation,” said the company in its BSE Filing.

The company’s sales volume was recorded at 156,293 tonnes in this quarter and specialty products division (SPD) that manufactures precision strips and coin blanks saw growth of 6% in sales volume during Q3 FY20, said the company in a statement.

“This glut of imports has led to distortion in stainless steel market prices. Inverted duty structure continues to hurt the industry equally, where imports of raw materials from FTA countries are being taxed at 2.5% while finished goods are being imported without any duty,” said the company.

A new yard in Hisar has been made operational and key sectors like railway, metro, and hollowware continued to drive demand and volumes for the Company in Q3FY20, said the company.

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