Sales volume at 543,619 MT, up by 26% YoY
Net revenue at INR 9,720 crores, up by 14% YoY
EBITDA at INR 1,070 crores, up by 54% YoY
PAT at INR 609 crores, up by 74% YoY
Net debt at INR 2,149 crores
Net debt-to-equity ratio at ~0.2
Net revenue at INR 9,797 crores, up by 12% YoY
EBITDA at INR 1,231 crores, up by 80% YoY
PAT at INR 764 crores, up by 120% YoY
Gurugram, October 19, 2023: The Board of Directors of Jindal Stainless Limited today announced the Q2FY24 financial results. The company’s standalone sales volume for the second quarter of FY24 stood at 543,619 metric tonnes (MT), up by nearly 26% year-on-year (YoY), owing to robust domestic demand and the company’s agility in catering to the global markets amidst muted demand. The company’s Q2FY24 standalone net revenue was recorded at INR 9,720 crores, an increase of 14% YoY. Standalone EBITDA stood at INR 1,070 crore, while standalone profit after tax (PAT) was at INR 609 crores. Net debt for the quarter was recorded at INR 2,149 crores and the net debt-to-equity ratio was maintained at ~0.2, which is one of the best in the metal segment. Net debt/EBITDA for the quarter improved to ~0.5. Meanwhile, consolidated net revenue grew by 12% YoY to reach INR 9,797 crores. Consolidated EBITDA and PAT were recorded at INR 1,231 crores and INR 764 crores, respectively.
The Board of Directors also approved payment of interim dividend @50% i.e. INR 1 per equity share (face value of INR 2 each) for FY24. The record date for determining the entitlement of members for the purpose of payment has been set as October 28, 2023. The dividend shall be paid on or before November 17, 2023, i.e. within 30 days of the approval. The aggregate payout will be nearly INR 82.34 crores.
Domestic demand for stainless steel continued to rise. Ahead of the upcoming festive season, the company’s sales in the auto segment – besides other consumer-facing segments – witnessed an uptick. In a historic moment for the company that strengthens its presence in aerospace, Jindal Stainless’ indigenously developed heat-resistant, high-strength alloy steel grade was used in the motor casing of the Chandrayaan-3 that reached the lunar surface recently.
The unchecked inflow of subsidised and substandard foreign imports continued to distort the level playing field against Indian manufacturers, especially the MSME sector. The company maintained sales in certain global geographies with its continuous innovation and efforts to explore new markets and segments in the face of challenging macroeconomic conditions, weakened global demand and pricing pressure that affected export volumes on a QoQ basis.
Financial performance summary (figures in INR crore)
|SS Sales Volume (MT)||543,619||548,613||-1%||433,047||26%||1,092,232||788,894|
Other key developments:
Commenting on the performance of the company, Managing Director, Jindal Stainless, Mr Abhyuday Jindal, said, “Our domestic sales are up by 15% YoY, buoyed by the government’s push for stainless steel in strategic sectors. As we wait for the National Stainless Steel Policy, we are confident that the per capita consumption of stainless steel in India will increase from the current 2.8 kg in the coming years. Chinese imports have increased by nearly 55% YoY. This highlights the unchecked dumping of subsidised and substandard Chinese products in the Indian market. We hope the government will take notice of the continuous and rampant imports by China, which is hurting the sector, especially the MSMEs, as well the government’s vision of an Atmanirbhar Bharat.”
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 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 10 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% until FY 2035 (from FY 2022 baseline levels of 1.91 tonnes CO2/tonnes of crude steel) and achieve Net Zero by 2050.