Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

Jindal Stainless Limited posts Q4 PAT at Rs 32 crore

Posted On: 2019-05-20 23:46:08

The Board of Directors of Jindal Stainless Limited (JSL) in its meeting today approved the financial result of the Company for Q4FY19 and for the year ended March 31, 2019. The Company recorded its Q4FY19 Profit After Tax (PAT) at Rs 32 crore. It's noteworthy that the consortium of CDR (Corporate Debt Restructuring) lenders has agreed to allow CDR exit for the Company with effect from March 31, 2019, subject to requisite approvals from their respective competent authorities. The aggregate liability of recompense as on March 31, 2019 was determined at Rs 191 crore as per extant guidelines. The Company made an incremental provision for Rs 57 crore in Q4FY19 vs Rs 27 crore in Q3FY19. With this, the entire recompense liability as on March 31, 2019 is fully provided for. Accordingly, the PAT dipped by 38%.

Managing Director, Jindal Stainless Limited, Mr Abhyuday Jindal, said "CDR exit will give us more opportunities to consolidate our financial and leadership position. We are now looking forward to an intervention by the Indian Government to create a level playing field for Indian manufacturers. The industry needs Government support to compete with rampant dumping by FTA and other countries. To the double disadvantage of Indian manufacturers, the domestic stainless steel industry is faced with the challenge of inverted import duty structure. While imports of finished goods from FTA countries are duty-free, Indian producers have to pay a 2.5% import duty on stainless steel scrap and ferro-nickel, the two most important raw materials, both of which are unavailable in the country. Further, in the absence of an effective safeguard duty structure, all trade remedial measures imposed by the Government are being circumvented through dumped, subsidized, or re-routed imports. We need active government support to bring alive the Make in India vision and create more jobs for the domestic economy."

Despite a strained external trade environment, JSL continued to service growing domestic demand arising from Railways, Metro, Process Industry, Pipe & Tube, and Hollowware segments, and specialized & duplex grades of stainless steel. Given the Company's sectorfocused approach, robust marketing plans, digitized and optimized production efficiencies, and heightened emphasis on customer service, it is expected that growth will continue undeterred in these segments.

The annual sales volume and net revenue grew by 9% and 17% respectively. Despite the pressure on margins exerted by subsidized imports, JSL could manage to maintain its leadership position in the domestic stainless steel market during FY 18-19. However, EBIDTA margins continued to be under pressure, which adversely impacted Company's profitability. The net worth of the Company stood at Rs 2,475 crore, up by around 5% over FY 17-18.

Decline in Nickel prices globally for seven consecutive months during FY 18-19 kept prices under pressure. Moreover, increased protectionism across US and EU further hindered international trade. For the domestic stainless steel industry, FY 2018-19 was fraught with severe distortion in prices as imports rose in a big way from FTA nations like Indonesia, Korea, and Japan. This was clearly reflected in India's trade balance with Indonesia, as Indonesian imports leaped by ~14 times in FY 18-19, as compared to the previous financial year. This surge in stainless steel imports from Indonesia became one of the biggest threats for domestic industry during FY 18-19.

In the lack of an anti-circumvention law on CVD, re-routing of Chinese origin material through various countries in ASEAN region continued unabated during the quarter and the year. Over and above this, the competitiveness of the industry was also affected on account of low import duty on finished stainless steel flat products (7.5%) as against the import duty on finished steel products (12.5%).

Shares of JINDAL STAINLESS LTD. was last trading in BSE at Rs.38.5 as compared to the previous close of Rs. 34.3. The total number of shares traded during the day was 529621 in over 2359 trades.

The stock hit an intraday high of Rs. 40 and intraday low of 34. The net turnover during the day was Rs. 20482495.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Persistent Systems arm to acquire Youperience GmbH

ICRA revises ratings of Sasan Power Ltd

IFCI update on Corporate Business Plan

Jump Networks Launches Rural Organic Farming Initiative Using TORUS

Asian Granito India Ltd inaugurates new showroom in Himmatnagar

Jubilant Life Sciences Ltd issues CPs of Rs. 40 crore

Prism Johnson Ltd board to announce Q1 results on July 30, 2019

NTPC Wins 40 MW Solar Capacities In UPNEDA'S 500 MW Tender

DCW Ltd board to consider preferential issue for Rs. 80 crores

Endurance Technologies Ltd board to approve Q1 results on Aug 8, 2019

Godrej Properties Ltd board to consider QIP on June 28, 2019

Transpek Industry Ltd to restart operations at Ekalbara factory

Panorama Studios International and PVR Pictures collaborate to distribute films in India

SpiceJet introduces Riyadh as its 10th international destination

TCS' Jile™ makes its debut in the Gartner 2019 Magic Quadrant for Enterprise Agile Planning Tools

Infosys named a Leader among API Strategy and Delivery Service Providers in 2019 Report

Mideast Integrated Steels Ltd announces resignation of Mr Dipak Chatterjee

Nestle India Introduces MAGGI Fusian Noodles range

Dr. Reddy's Laboratories announces the launch of Tobramycin Inhalation Solution, USP in the U.S. Market

Indag Rubber Ltd board to consider Q1 results on July 23, 2019

Shriram Capital Ltd updates on potential exit of Piramal and TPG

Finolex Cables Ltd board to approve Q1 results on Aug 14, 2019

Wisec Global Ltd announces resignation of independent director

Kalpataru Power Transmission Ltd calls for board meeting on July 2, 2019

IndusInd Bank inaugurates a branch in Jewar, Uttar Pradesh

Subex joins Global Leaders' Forum Communications Blockchain Network

Genus Paper & Boards Ltd appoints Mr. Pradeep Narain Tandon as additional director

JSW Steel Ltd board to announce Q1 results on July 26, 2019

Nucleus Software's latest version of FinnOne Neo to help lenders accelerate their path to digital revenues

Alembic Pharmaceuticals receives USFDA Approval for Oseltamivir Phosphate Capsules USP

Court Grants Non Bailable Arrest Warrants of Kislay Panday & Ram Mani Panday

Alankit spearheads large-scale Student ID card project - A smart initiative by the e-Governance leader

Mahindra World City, Jaipur inaugurates 'Digital Literacy Centre' in Laliya-Ka-Bas Village

TAAL Enterprises Ltd Q4 PAT rises to Rs. 6.43 crores

Quess Corp Ltd to consider raising of Rs. 51 crores

Andhra Bank board approves proposal to raise Rs. 2000 crore

Welspun Corp Ltd fixes July 5, 2019 as record date for buy back

Quess Corp arm bags work order from Amazon

TTK Prestige Ltd board to announce Q1 results on August 12, 2019

IFCI to sell its 2.44% stake in NSE

Master Trust Ltd Board to consider Sub-division of equity shares

Eris Lifesciences Ltd Board to consider Buyback of equity shares

RITES announces 1:4 Bonus Share Issue

L&T announces offer for sale of shares of L&T Technology Services Ltd at Rs. 1650

Offer for Sale of Shares of SBI Life Insurance Company Ltd announced by Promoter

Zensar Technologies Ltd board to approve Q1 results on Aug 6, 2019

Emami Group Promoters divest 10% stake for INR 1230 cr in Emami Limited

Ind-Ra affirms long term rating of HEG Ltd

TCS hikes Stake in JV with Mitsubishi Corporation

Som Distilleries & Breweries Ltd calls for board meeting on July 3, 2019







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019