Sales Volume at 548,613 MT, up by 54% YoY
Net Revenue at INR 10,027 crore, up by 25% YoY
EBITDA at INR 1,118 crore, up by 35% YoY
PAT at INR 666 crore, up by 47% YoY
Net debt at INR 2,956 crore
Net debt-to-equity ratio at ~0.2
Net Revenue at INR 10,184 crore, up by 25% YoY
EBITDA at INR 1,192 crore, up by 34% YoY
PAT at INR 738 crore, up by 45% YoY
Gurugram, July 26, 2023: Board of Directors of Jindal Stainless Limited (JSL) today announced the Q1FY24 financial results. The company’s standalone sales volume for the quarter stood at 548,613 metric tonnes (MT), up 54% year-on-year (YoY), buoyed by macro-economic factors, notwithstanding the global slump in sales and market volatility. The company’s Q1FY24 standalone net revenue was recorded at INR 10,027 crore, an increase of 25% YoY. Standalone EBITDA stood at INR 1,118 crore while standalone profit after tax (PAT) was at INR 666 crore. Net debt for the quarter was recorded at INR 2,956 crore and the net debt-to-equity ratio was maintained at ~0.2. Consolidated net revenue grew by 25% YoY to reach INR 10,184 crore. Meanwhile, consolidated EBITDA and PAT were recorded at INR 1,192 crore and INR 738 crore, respectively.
Backed by a healthy growth in the domestic market and government push on infrastructure, sales volume grew across diverse segments. Pre-festive season demand picked up in consumer segments, contributing to the sales volume. Coupled with an agile supply chain and a diverse product portfolio, the company was able to capitalize on the developing market situation throughout the quarter.
In Q1FY24, the overall JSL exports grew by 17% on a YoY basis. JSL continued to focus on servicing markets like the USA and Europe. In line with its strategy to restore its export volumes prior to the levy of export duty in Q1FY23, the company continued to develop new products and markets for exports.
Financial Performance Summary (figures in INR crore)
|SS Sales Volume (MT)||548,613||507,633||8%||355,847||54%|
Import of subsidized stainless steel continued to be a menace for the domestic industry. As much as one-third of the Indian stainless steel market is captured by imports. This has severely affected particularly the MSME sector, which constitutes nearly 45% of India’s stainless steel manufacturing capacity, with most of them still operating at 40% capacity.
Other key developments:
Commenting on the performance of the Company, Managing Director, Jindal Stainless, Mr Abhyuday Jindal, said, “We have recently expanded our capacity, hence, the attention will be on stabilizing and synergizing the expanded units. We will continue to maintain a sharp focus on the domestic market and capitalize exports, wherever possible. However, since the Indian stainless steel industry is operating well below its capacity, it needs government support for level-playing field. The industry is still awaiting a positive decision by the government on imposing a countervailing duty (CVD) to curb dumping of mass and subsidized stainless steel in India by China.”
About Jindal Stainless
India’s leading stainless steel manufacturer, Jindal Stainless, has an annual turnover of INR 35,700 crore (US $4.30 billion) in FY23, and is ramping up its facilities to reach 2.9 million tonnes of annual melt capacity in FY24. It has two stainless steel manufacturing facilities in India, in the states of Odisha and Haryana, and an overseas unit in Indonesia — this unit serves the markets of South-East Asia and nearby regions. Jindal Stainless has a worldwide network in 15 countries and one service center in Spain. In India, there are 10 sales offices and six service centers. The Company’s product range includes stainless steel slabs, blooms, coils, plates, sheets, precision strips, blade steel, and coin blanks.
Integrated operations have given Jindal Stainless the edge in cost competitiveness and operational efficiency, making it one of the world’s top five stainless steel players (ex-China). Founded in 1970, Jindal Stainless continues to be inspired by a vision for innovation and enriching lives and is committed to social responsibility. The Company boasts of an excellent workforce, value-driven business operations, customer centricity and the best safety practices in the industry.
JSL remains committed to a greener, sustainable future, fuelled by environmental responsibility. The company manufactures stainless steel using scrap in an electric arc furnace, the least greenhouse gas emission route since it enables 100% recyclability with no reduction in quality, thereby achieving a circular economy. The company aims to reduce carbon emission intensity by 50% until FY 2035 (from FY 2022 baseline levels of 1.91 tonnes CO2/tonnes of crude steel) and achieve Net Zero by 2050.