InvestorQ : How did Jindal Stainless dip from profits last year to losses this year?
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How did Jindal Stainless dip from profits last year to losses this year?

Answer
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Anamika Sodhani answered.
3 months ago


For the Mar-20 quarter, Jindal Stainless reported net losses of Rs.22 crore as against a a profit of Rs.32 crore in the same period last year. The net profit for the full year was, however, 10% higher on a YOY basis at Rs.153 crore. Jindal Stainless witnessed slower growth on all accounts due to muted economic sentiments in the light of the COVID-19 outbreak and the consequent lockdown. The company also took a hit on account of a sharp fall in nickel prices which impacted the valuation of their closing stock. Sales volumes were 2% lower in the Mar-20 quarter even as revenues for the quarter remained almost flat at Rs.12,320 crore. Jindal also took a hit on account of cheaper stainless steel imports from Indonesia which more than tripled in the last one year.