Jindal Stainless reports flat performance in Q2 FY25, with some positive and negative aspects.

Jindal Stainless, a largecap company in the steel/sponge iron/pig iron industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Jindal Stainless has shown a flat performance in the quarter, with a score of 1, which is an improvement from the previous quarter’s score of -3. However, there are some positive aspects to the company’s financials. The operating cash flow has been consistently growing over the last three years, with the highest amount of Rs 3,683.24 crore generated annually. This indicates that the company has been able to generate higher cash revenues from its business operations.

In terms of short-term liquidity, Jindal Stainless has also shown improvement, with the highest amount of cash and cash equivalents at Rs 2,117.58 crore in the last six half-yearly periods.

However, there are also some areas of concern for the company. The profit after tax (PAT) for the nine-month period has decreased by 20.24% year on year, standing at Rs 1,761.29 crore. This negative trend in PAT is something to keep an eye on in the near future. Additionally, the interest cost for the quarter has increased by 11.11% quarter on quarter, with the highest amount of Rs 158.59 crore in the last five quarters. This could be a sign of increased borrowings for the company.

Overall, Jindal Stainless has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to the financials, there are also some areas of concern that investors should keep in mind. MarketsMOJO has given a ‘Hold’ call for the company’s stock, indicating a neutral stance on its performance.