India's Jindal Stainless posts Q2 profit decline on lower steel prices

Jindal Stainless

17/10/2024 10:54

Oct 17 (Reuters) - India's Jindal Stainless  JIST.NS  reported a drop in second-quarter profit on Thursday, as
falling steel prices offset a drop in input costs.
    The company's consolidated profit after tax fell 20% to 6.09 billion rupees ($72.4 million) for the three months ended
Sept. 30.
    The stainless steel maker's net revenue came in at 97.77 billion rupees, down marginally from 97.97 billion rupees a
year earlier.
    For further earnings highlights, (click here).
    
    
KEY CONTEXT
    
    Steel prices in India plunged to their lowest in more than three years in August, as the country remained a net importer
of the metal.
    Higher imports have been a concern for Indian steel companies for the past few quarters. Steel Minister H.D. Kumaraswamy
had told Reuters earlier this year that the country is currently in discussions to tackle the issue.
    Meanwhile, costs of key raw materials, iron ore and coking coal, declined in the reported quarter, analysts said.
    
    PEER COMPARISON
    
                                   Valuation (next 12        Estimates (next 12    Analysts' sentiment              
                                   months)                   months)                                                
                      RIC          PE        EV/EBITDA       Revenue     Profit    Mean     No. of   Stock to       Div
                                                             growth      growth    rating*  analyst  price          yield
                                                                                            s        target**       (%)
 Jindal Stainless      JIST.NS     15.86     10.09           6.12        28.39     Buy      7        0.88           0.39
 Jindal Steel And      JNSP.NS     13.14     7.59            17.87       28.13     Buy      25       0.91           0.21
 Power                                                                                                              
 Tata Steel            TISC.NS     13.65     7.37            5.73        94.26     Hold     29       0.94           2.32
 Steel Authority of    SAIL.NS     14.52     7.30            3.42        14.87     Sell     11       1.12           1.54
 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
    
    JULY-SEPTEMBER STOCK PERFORMANCE 
    
    
    -- All data from LSEG
    -- $1 = 84.0280 Indian rupees

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
JULY-SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3BPcV3x
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Manvi Pant in Bengaluru; Editing by Sumana Nandy)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))