New Delhi, February 8, 2021: Jindal Stainless (Hisar) Limited (JSHL) today approved its Q3FY21 financial results. The quarter witnessed a steady economic recovery that led to higher stainless steel demand. JSHL’s sales volume stood at 191,272 tonnes, registering an increase of 22% over the corresponding period last year (CPLY). Profit After Tax (PAT) and EBITDA of the company stood at INR 190 crores and INR 351 crores, respectively. Consistent focus on deleveraging helped bring down the finance cost by 23% over CPLY.
A quick normalisation in supply chain post the peak-COVID period, uptick in demand from rural and urban centres, and renewed efforts by the industry helped in reviving the stainless steel demand in a short span. During Q3FY21, strong demand was registered in the auto, pipe & tube, metro rail, and railway wagon segments. Moreover, sales of JSHL’s Specialty Products Division (SPD) grew by 20% during Q3FY21 over CPLY.
Globally, stainless steel raw material prices followed an upward trajectory throughout Q3FY21. During the July-December 2020 period, Nickel prices surged by ~40%, Molybdenum prices increased by ~27%, while Copper and Ferrous Scrap grew by nearly 24% and 45% respectively. The landed cost of raw materials also witnessed a surge due to increase in shipping cost in the range of 30-35%, in comparison to the pre-COVID period. Consequently, a higher input cost impacted domestic stainless steel prices during Q3FY21. Additionally, imports continued to distort the domestic stainless steel market, constituting nearly one-fourth of the total domestic consumption.
The domestic-export share of sales volumes during the quarter, on a YoY basis, was as follows:
Other key developments:
Financial performance summary:
Figures in INR crore(s)
On a 9-month standalone basis, JSHL’s sales volume was recorded at 394,157 tonnes. The Company registered a PAT of INR 252 crores, EBITDA of INR 639 crores, and net revenue of INR 5,641 crores.
Commenting on the performance of the Company, Managing Director, JSHL, Mr Abhyuday Jindal, said, “JSHL’s performance is a result of our strong focus on streamlining operational capabilities, consistent process improvement, and addition of value-added products in our mix. However, the domestic stainless steel industry will be adversely impacted by the recent announcement in the Union Budget. Suspension and revocation of duties will grant smooth access to Chinese and Indonesian subsidised stainless steel products into the Indian market. This move will not only be detrimental for the organised players, but the MSME sector, which caters to 35% of the total stainless steel demand, would be forced to shut down. We urge the government to review this decision soon as it is against the essence of the ‘Atmanirbhar Bharat’ mission.”