InvestorQ : Why has Jindal Stainless reported a loss in the Jun-20 quarter?
diksha shah made post

Why has Jindal Stainless reported a loss in the Jun-20 quarter?

Answer
user profile image
swati Bakhda answered.
3 weeks ago


Jindal Stainless Ltd has just reported a net loss of Rs.86.50 crore for the Jun-20 quarter. The fall in profits was largely due to sharply lower total revenues. The sales revenues fell almost to one-third the previous year’s levels to Rs.1272 crore for the Jun-20 quarter.

In the Jun-19 quarter, Jindal Stainless reported net profit of Rs.66.84 crore. In the current quarter, the fall in revenues was partially compensated by the halving of total expenses to Rs.1410 crore. However, the damage to the profits are already done as is evident.

With a sharp compression in demand, most of the steel companies have been under pressure in the last quarter. This is largely due to the lag effect of COVID-19 and the labour and supply chain disruptions that the COVID-19 pandemic has triggered.

It may be recollected that the operations at the Jindal Stainless plant were suspended in the whole of April this year and part of May. The company has now reported that production is getting back to normal levels but the lag effect remains.