Jindal Stainless' net loss narrows to Rs 65 cr in Apr-Jun quarter

Its total income rose 29% to Rs 2,126 crore, compared with Rs 1,652 crore during the corresponding quarter last year

Jindal Stainless Ltd (JSL) on Thursday reported narrowing of its net loss to Rs 65 crore for the quarter ended June 30, as against a net loss of Rs 138 crore in the year-ago period.

Its total income rose 29 per cent to Rs 2,126 crore in the April-June quarter this financial year, from Rs 1,652 crore during the corresponding quarter last year.

The company reported a 11 per cent growth in stainless steel production at 173,000 tonnes in the June quarter this financial year from 156,000 tonnes in the year-ago period.

Ferro alloy output was up 53 per cent to 48,236 tonnes in April-June on 2016-17, from 31,579 tonnes in the corresponding period in 2015-16.

Stainless steel sales grew 27 per cent to 166,000 tonnes, from 131,000 tonnes, during the quarter under review.

Upon the part implementation of Assets Monetisation Plan (AMP), the debt burden of both term loan and working capital facilities on the company has been reduced. However, high interest cost and delay in full implementation of AMP has resulted into continued losses in the company, it said.

On outlook, JSL said with influence of global factors, overall steel price trend has been less yielding worldwide.

By and large world crude steel production remained stagnant with the exception of China in the April-June 2016 quarter and capacities have been operating at an average of barely 70 per cent, it added.

"Stainless steel demand has remained sluggish globally in first half of year 2016, while early data suggests that annual production will reach new record leading to pressure on prices," JSL said.

On the domestic front, stainless steel industry has shown reasonably good growth in comparison to the rest of the world.

"In India, stainless steel demand is expected to pick up on the back of good monsoon and recovery in Industrial production," it said.

However, persistent dumping especially from China, poses a big threat to the Indian stainless steel industry and may act as a spoiler if timely and appropriate trade remedial measures are not taken by the government, JSL added.