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Q3FY24 highlights |
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Standalone Performance: Sales volume at 543,619 MT, up by 26% YoY Net revenue at INR 9,088 crores, up by 1% YoY EBITDA at INR 1,021 crores, up by 8% YoY PAT at INR 779 crores, up by 41% YoY Net debt at INR 3,085 crores Net debt-to-equity ratio at ~0.23 Consolidated Performance: Net revenue at INR 9,127 crores EBITDA at INR 1,246 crores, up by 43% YoY PAT at INR 691 crores, up by 35% YoY |
New Delhi, January 18, 2024: The Board of Directors of Jindal Stainless Limited (JSL) today announced the Q3FY24 financial results. The company’s standalone sales volume for the third quarter of FY24 stood at 5,12,015 metric tonnes (MT), up by nearly 9% year-on-year (YoY), owing to a healthy domestic demand. However, a slight dip of 6% was observed on a quarter-on-quarter (QOQ) basis, due to a planned maintenance in the plants aimed at upgrading the output for an enhanced product mix and a faster ramp up.
The company’s Q3FY24 standalone net revenue was recorded at INR 9,088 crores, reflecting a marginal increase of 1% YoY. Standalone EBITDA stood at INR 1,021 crores while standalone profit after tax (PAT) was at INR 779 crores. Net debt for the quarter was recorded at INR 3,085 crores and the net debt-to-equity ratio was maintained at ~0.23. Net debt/EBITDA for the quarter stood at ~0.72. Meanwhile, consolidated net revenue was recorded at INR 9,127 crores. Consolidated EBITDA and PAT stood at INR 1,246 crores and INR 691 crores, respectively.
Domestic demand for stainless steel continued to be on the rise, with the auto sector witnessing growth in all segments, and the decorative pipe and tube sector registering robust growth as well. The company has begun production at its newly acquired facility in Ghaziabad to widen its product offerings through the addition of Long products like wire rods and rebars to the company’s existing product portfolio, and the operations will be ramped up in FY25. Despite muted global demand, pricing pressure, destocking, and geopolitical issues such as the one unfolding in the Red Sea, the company managed to maintain sales outside India. For the first time, the company showcased its decarbonisation initiatives at the prestigious UN COP28 climate summit and announced that it is set to achieve its mid-term target of carbon emissions reduction well before the target year of 2035.
The implementation of mandatory quality norms by the Bureau of Indian Standards (BIS) checked the influx of the 200 series grades of subsidised and substandard foreign imports in the quarter. However, there was a sharp increase in the dumping of the 300 series, to the tune of 73%, majorly from China and Vietnam.
Domestic/export mix
Geographical Segment | Q3FY24 | Q2FY24 | 9MFY24 |
Domestic | 88% | 87% | 86% |
Export | 12% | 13% | 14% |
Financial performance summary (figures in INR crore)
Particulars | Standalone | |||||||
---|---|---|---|---|---|---|---|---|
Q3FY24 | Q2FY24 | Change (Q-O-Q) | Q3FY23 | Change (Y-O-Y) | 9MFY24 | 9MFY23 | Change (YoY) | |
SS Sales Volume (MT) | 5,12,015 | 543,619 | -6% | 4,67,879 | 9% | 16,04,248 | 12,56,772 | 28% |
Net Revenue | 9,088 | 9,720 | -7% | 9,001 | 1% | 28,835 | 25,586 | 13% |
EBITDA | 1,021 | 1,070 | -5% | 947 | 8% | 3,208 | 2,470 | 30% |
PAT | 779 | 609 | 28% | 552 | 41% | 2,054 | 1,355 | 52% |
Particulars | Consolidated | |||||||
Q3FY24 | Q2FY24 | Change (Q-O-Q) | Q3FY23 | Change (Y-O-Y) | 9MFY24 | 9MFY23 | Change (YoY) | |
Net Revenue | 9,127 | 9,797 | -7% | 9,063 | 1% | 29,108 | 25,932 | 12% |
EBITDA | 1,246 | 1,231 | 1% | 868 | 43% | 3,669 | 2442 | 50% |
PAT | 691 | 764 | -10% | 513 | 35% | 2,193 | 1368 | 60% |
Other key developments:
Management Comments:
Commenting on the performance of the company, Managing Director, Jindal Stainless, Mr Abhyuday Jindal, said, “The quarter has been eventful, with our maiden COP28 presence where we shed light on our decarbonisation efforts as a responsible business. Despite a global slowdown in stainless steel markets, the domestic market has been witnessing steady growth. Given the promise that India holds for the near and far future, we are confident of meeting our volumes in the next quarter. We will continue to focus our energies on green manufacturing, operational excellence, business development, and nation–building.”
About Jindal Stainless
India’s leading stainless steel manufacturer, Jindal Stainless, has an annual turnover of INR 35,700 crore (USD 4.30 billion) in FY23, and is ramping up its facilities to reach 3 million tonnes of annual melt capacity in FY24. It has two stainless steel manufacturing facilities in India, in the states of Odisha and Haryana. Jindal Stainless has a worldwide network in 15 countries and one service centre in Spain. In India, there are ten sales offices and six service centres. 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 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% well before 2035 (from FY22 baseline levels of 1.91 tonnes CO2/tonnes of crude steel) and achieve Net Zero by 2050.