Jindal Stainless Limited (JSL) has reported a consolidated profit of ₹80.64 crore for the second quarter of financial year 2020-2021. This is twice the consolidated profit of ₹39.52 crore reported by the company in the corresponding period of the previous financial year.
“Exceptional gains for the quarter stood at ₹25 crore on account of favourable forex movement. Backed by a gradual recovery in domestic demand throughout the second quarter, JSL sales volume recovered to pre-Covid levels. Compared to the preceding quarter, sales volume witnessed a surge of 159 per cent at 230,350 tonnes in the quarter under review,” a company statement said.
Consolidated total income was lower at ₹3,325.15 crore in the quarter under review, down from ₹3,298.14 crore in the comparable period of last fiscal.
Sharing his outlook for the company, JSL Managing Director, Abhyuday Jindal, said, “Going forward, we expect higher brand penetration in sub-urban markets through strategic partnerships via co-branded products.”
The Company Board also approved the constitution of a Committee of Board of Directors of the Company to explore and evaluate various options of reorganisation. The committee will explore the consolidation of stainless-steel businesses of the Company and of other group entities by way of scheme of arrangement. The aim is to realise greater synergies, with an objective of maximising value of all the stakeholders and to take necessary actions in this regard, a company statement said.
Promoters may re-merge two listed Jindal Stainless entities
BusinessLine had reported in September this year that the promoters of Jindal Stainless (Hisar) Ltd (JSHL) and Jindal Stainless Ltd (JSL) are evaluating options to once again merge the two listed entities in a bid to leverage the stronger balance sheet of the merged entity.