Jindal Stainless Ltd. (JSL), the country’s largest stainless steel maker, reported a 48 per cent drop in standalone net profit to Rs 189 crore for the quarter ending September 30, 2022. The net profit in the year-ago period was ₹363 crore.

During the period under review, net revenue dropped 13 per cent YoY to ₹5,442 crore, while EBITDA dropped to ₹411 crore, down 42 per cent YoY.

JSL’s net external debt came down to ₹1,779 crore as of September 30, 2022, and the net debt-to-equity ratio improved to 0.5.

In a statement, the company said, globally, the demand for stainless steel decelerated throughout Q2FY23. The decline was due to subdued demand in the real estate and construction sectors, high energy costs, and aggressive rate hikes by the FED.

According to Abhyuday Jindal, Managing Director, JSL’s exports dipped in Q2FY23 following the levy of duty by the Centre. However, the company was able to achieve its highest ever quarterly domestic sales following its focus on increasing the domestic customer base.

On the domestic front, demand from end-user segments continued to be strong. As a result, 95 per cent of JSL’s total sales volume was to domestic customers, it further stated.

“The company’s MoU scheme in FY23 and its focus on acquiring new OEM customers garnered positive sentiments,” the statement added.

Demand was steady in the automobile sector during Q2FY23, registering a growth of nearly 28 per cent on a quarter-over-quarter basis. In the ornamental pipe and tube (P&T) segment, average sales increased 41 per cent over Q1FY23. Demand was also strong in the lifts and elevators segment.

Indian Railways’ continued thrust on increasing its share of business in freight saw a 25 per cent jump in JSL’s sales to the railway wagon segment during Q2FY23.

“Going forward, Vande Bharat trainsets will remain a major focus area for the railways. And nearly ₹ 80,000 crore of investments in metro projects are expected over the next 5 years,” the company’s statement added.