New Delhi [India], Sep 8 (ANI): Jindal Stainless Ltd (JSL) on Tuesday posted a loss of Rs 87 crore in Q1 FY21 due to lower sales in the Covid-19 induced business environment.
The net revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) were severely hit to stand at Rs 1,262 crore and Rs 78 crore respectively.
Sales volume contracted by 60 per cent from 2.22 lakh tonnes in Q1 FY20 to 88,814 tonnes in Q1 FY21.
The widespread disruption in supply chains and temporary suspension of manufacturing activity pulled down melt production to 90,329 tonnes, lower by 63 per cent over the corresponding period last year. Interest cost during the quarter fell by 8 per cent to Rs 131 crore.
Even though April was a complete wash-out for domestic manufacturing, said JSL, imports of stainless steel were even higher than the pre-Covid levels of January.
While the overall imports jumped by 44 per cent during this period, those from Indonesia witnessed an eight-fold leap. JSL said the domestic industry awaits relief measures from the government to alleviate these distorted trade practices.
Managing Director Abhyuday Jindal said the company has undertaken several business, operational and strategic initiatives to minimise the impact of the pandemic, and hope to recover by September-end with improved business sentiments.
An uptick in healthcare and two-wheeler segments along with likely improvement in retail segment during festive season is expected to boost the demand for stainless steel in the coming months, he added.
This is over and above the conventional applications of stainless steel in construction, transportation and process industries which are slowly resuming pace.