India's Jindal Stainless posts Q1 profit beat on domestic demand

Jindal Stainless

30/07/2024 13:11

BENGALURU, July 30 (Reuters) - 
    India's Jindal Stainless  JIST.NS  on Tuesday posted a first quarter profit that beat
analysts estimates as growth in the domestic market help offset a fall in exports.
  
        The company earned a consolidated net profit of 6.48 billion rupees ($77.4 million) for
the quarter ended June 30, down 13.1% from a year earlier, but topping analysts' estimate of a
profit of 5.87 billion rupees, as per LSEG data.
    Its revenue from operations fell 7.4% to 94.30 billion rupees.
    The company also approved a fund raise of up to 50 billion rupees.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JM14Y
    

    KEY CONTEXT
  
        Jindal Stainless' standalone sales grew 5.4% year-on-year in the quarter to 578,143
tonnes. However, the sales growth was mainly backed by domestic market as the share of export in
company's total sales fell from 17% last year to 10% this quarter. 
    Exports were affected by the Red Sea tensions, which extended transit times and freight
costs, and also caused a shortage of containers, the company said in a statement. It also
flagged concerns about cheap imports from China and Vietnam flooding the Indian market which has
been plaguing the sector for the past few quarters. 

    PEER COMPARISON
  
    
                            Valuation (next  Estimates (next   Analysts' sentiment         
                              12 months)        12 months)                                 
                 RIC        PE      EV/EBIT  Revenue  Profit   Mean    # of      Stock to  Div
                                    DA       growth   growth   rating  analysts  price     yield
                                             (%)      (%)      *                 target**  (%)
 Jindal           JIST.NS    15.55     9.70   19.89    28.80   Buy            8    0.96     0.24
 Stainless                                                                                 
 Jindal Steel     JNSP.NS    13.97     8.07   14.40    17.03   Buy           24    0.95     0.21
 And Power                                                                                 
 Tata Steel       TISC.NS    12.06     7.67   4.80    127.10   Hold          28    0.98     2.21
 Steel            SAIL.NS    14.68     7.76   5.61     8.35    Sell          11    1.18     0.85
 Authority of                                                                              
 India                                                                                     
    
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT


    APRIL-JUNE STOCK PERFORMANCE
  
    -- All data from LSEG
    -- $1 = 83.6930 Indian rupees


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Jindal Stainless June Qtr 2024 vs Peers    https://tmsnrt.rs/4dp46Lj
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Varun H K)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))