CARE Ratings reaffirms ‘CARE A‐’ rating with stable outlook for JSL, Hisar

CARE Ratings reaffirms ‘CARE A‐’ rating with stable outlook for Jindal Stainless (Hisar) Limited

New Delhi, September  16,  2020:  The  long‐term  credit  facilities  of  Jindal  Stainless  (Hisar)  Limited  (JSHL) have been reaffirmed at ‘CARE A‐’ rating with a stable outlook by CARE Ratings. The short‐ term credit facilities of the Company have also been reaffirmed at ‘CARE A2+’ rating. JSHL’s rating  was  retained  in  light  of  the  Company  maintaining  an  accomplished  track  record  in  financial  and  operational domains. Additionally, JSHL’s strength to serve diversified end‐user industries, with an  emphasis  on  value‐added  products,  has  proved  to  be  favourable  in  the  rating  analysis  of  the  Company. A healthy per‐tonne operating profit, coupled with debt  reduction and improved cash‐ flow, weighed positively for the Company on the rating scale.  

Commenting  on  this  development,  Managing  Director,  JSHL,  Mr  Abhyuday  Jindal  said, “This  development reinforces the strong fundamentals of JSHL. The operational capabilities of our Hisar  facility  stand  unmatched  in  the  domestic  market  and  our  high‐end  specialty  products  are  acknowledged  across  the  world.  An  overall  steady  performance  and  a  diversified  product  portfolio  were  considered  as  strong  parameters  by  CARE  Ratings.  I  am  confident  that  the  government  initiatives  for  ascertaining  a  level‐playing  field  to  the  domestic manufacturers  will  help the industry emerge stronger.”  In the CARE Ratings report, JSHL’s key rating drivers have been stated as, “improved sales  realizations from the value‐added steel segments (comprising of 300‐grade and 400‐grade) resulted  in an improvement in PBILDT per tonne from Rs. 14,894 in FY19 to Rs. 15,945 in FY20. The PAT  margin improved from 2.89% in FY19 to 3.80% in FY20 as a result of better PBILDT margin and  relatively lower interest expense. JSHL is engaged in the production of all grades of stainless steel  namely, 200‐grade, 300‐grade and 400‐grade. The 200‐grade finds application in utensils,  household goods, kitchen appliances, tubes, pipes, etc. the company also manufactures 300‐grade,  which finds application in railway coaches, high temperature applications, power plants and 400  grade, which finds application in razor blades, coins, automobiles and consumer durables. The  company also makes speciality stainless steel and other value‐added products which yield relatively  higher returns compared to other commoditized stainless‐steel products.”