Jindal Stainless Q4 earnings: Shares rise 8%; board approves raising Rs 5,000 crore

Shares of stainless steel maker Jindal Stainless Ltd rose over 8% despite the firm posting a 20% fall in net profit to Rs 716.29 crore in the March 2023 quarter. However on a quarter-on-quarter basis, the firm reported a 40% rise in profit from Rs 512 crore in the December quarter. The metal firm’s board approving the proposal to raise Rs 5,000 crore via issue of debt securities led to positive sentiment around the stock.  Jindal Stainless shares gained 8.42% to Rs 303.95 against the previous close of Rs 280.35 on BSE. It hit a 52 week high of Rs 329 on March 8.   

The stock has been gaining for the last two sessions. The stock of the stainless steel maker has gained 25% this year and risen 102% in the last one year. Total 1.44 lakh shares of the firm changed hands amounting to a turnover of Rs 4.31 crore on BSE. Market cap of Jindal Stainless rose to Rs 24,703 crore.   

In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 48, signaling it's trading neither in the overbought nor in the oversold zone. Jindal Stainless stock has a one-year beta of 1.1, indicating high volatility during the period. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock is technically trading in a bullish range.  

The New Delhi-based company's revenue from operations climbed to Rs 9765.08 crore in Q4 from Rs 9725.91 crore a year earlier. Sales zoomed 9% to Rs 35,697 crore in the last fiscal against net profit of Rs 32732 crore in the previous fiscal.  However, profit fell 33% to Rs 2083.83 crore in FY23 against Rs 3109.39 crore in the previous fiscal. 

The company said, "Continuous agility in sales and operations planning, digitisation, dynamic product mix & R&D powered product development remained the key reason behind the robust earnings performance." 

The Board of Directors (BoD) recommended a final dividend payment of Rs 1.50 for FY23 to the shareholders on account of improved financial performance, taking the total dividend payment to Rs 2.50 i.e. 125% per equity share with a face value of Rs 2 each. This announcement comes a month after the BoD approved a Special Interim Dividend payment at Rs 1 per equity share for FY23 on successful completion of the merger. 

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