Jindal Stainless third quarter revenue jumps 9% to Rs 3,585 crore

Jindal Stainless Ltd (JSL) said on Thursday its consolidated revenue in Q3 FY21 stood at Rs 3,585 crore, up by 9 per cent year-on-year.

The net revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) totalled Rs 473 crore while EBITDA margin was at 13.2 per cent. The profit after tax was Rs 170 crore.

The company said continuous and accelerated deleveraging along with interest rate rationalisation helped bring down the interest cost by 16 per cent over the corresponding period of last year to Rs 117 crore.

Besides, the Indian economy gained momentum and registered a faster than expected recovery after the peak Covid-19 period in 2020. The third quarter witnessed healthy revival in end-user segments like automotive, pipes and tubes, and industrial fabrication.

Backed by R & D efforts to indigenise various grades in the automotive sector, JSL was able to capitalise on the demand growth in the two-wheeler and passenger vehicle segments. It registered nearly 40 per cent growth in the ornamental pipe and tube segment during the quarter.

Managing Director Abhyuday Jindal said a V-shaped recovery in stainless steel demand domestically bolstered JSL's sales volume to 2.5 lakh tonnes in Q3 FY21.

"Buoyed by increasing demand in auto, pipes and tubes, and hollowware sectors, the outlook for domestic stainless steel market remains strong," he said in a statement.