Jindal Stainless Ltd has reported a ₹114.74-crore net profit for the last quarter of the financial year 2017-2018. This is 28 per cent lower than the ₹161.12-crore bottomline reported in the corresponding period of the financial year 2016-2017.
The bottomline has dipped despite a 28 per cent rise in the top line to ₹3,183.38 crore during the quarter under consideration.
This can be attributed to an increase in the purchase of stock in trade. During the quarter ending March 2018, the company’s expense on purchase of stock in trade stood at ₹309.65 crore. This was negligible (at ₹1.47 crore) during the comparable quarter ending financial year 2016-2017.
A higher expense on purchase of stock in trade can be because the management hopes the price of finished products to firm up further.
Buoyed by the results, the company has initiated negotiations to exit from the Corporate Debt Restructuring scheme.
The company board also approved the appointment of Abhyuday Jindal as MD from April 25.