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Sales volume registered at 255,099 tonnes, up by 15% YoY
Revenue at INR 3,810 crore, up by 31% YoY
EBITDA at INR 521 crore, up by 116% YoY; EBITDA margin at 13.69%
PAT zooms from INR (22) crore to INR 265 crore
Net debt stood at INR 2,810 crore
Revenue stood at INR 3,914 crore, up by 26% YoY
EBITDA at INR 542 crore; EBITDA margin at 13.9%
PAT at INR 293 crore
New Delhi, May 14, 2021: The Board of Directors of Jindal Stainless Limited (JSL) today approved the financial results of the Company for Q4FY21. A strong recovery in the domestic stainless steel demand continued in the January-March period and helped sales volume grow by 15% over the corresponding period last year (CPLY) to 255,099 tonnes in Q4FY21. JSL’s EBITDA and profit after tax (PAT) stood at INR 521 crores and 265 crores respectively. Continuing with the deleveraging, the company could further reduce its long term external debt by INR 129 crores during the quarter, which stood at INR 1530 crores. During the Q4FY21 the interest cost reduced by 36% over CPLY to INR 92 crores.
The fourth-quarter demand was buoyed by segments like Auto, and a healthy revival in demand from the Pipe & Tube segment, along with Railways & allied infrastructure, including the Metro segment. The demand for special grades in Q4FY21 registered growth due to localisation efforts by the government and Company’s initiatives for innovation. With further push on indigenous production and expected economic recovery, healthy demand is likely to be generated in the future as well. Demand from segments like Elevators and Lifts, and Hollowware also remained strong and is likely to continue.
On the global scale, stainless steel production was impacted by the onset of the pandemic, and stood at 50.90 million tonne in CY2020, registering a decline of 2.5% over CPLY. Stainless steel melt production in India for CY2020 was at 3.17 million tonnes, registering a decline of 19% over CPLY. Q4FY21 also witnessed further increase in raw material prices globally, wherein Scrap, Nickel, Copper and Ferro Chrome, etc. rose significantly over the Q3FY21 prices. The rally in raw material prices eventually pushed up prices of finished goods globally. This phenomenon was also visible for other commodities, including metal, due to pent up demand and economic recovery.
The Company maintained its focus on meeting domestic demand, which led to an increase in the overall proportion of domestic sales. The domestic-export share of sales volumes during the quarter, on a YoY basis, was as follows:
|Geographical Segment||Q4FY21||Q4FY20||% Change|
Other key developments:
Financial performance summary:
Figures in INR crore(s)
On a yearly basis, FY21 standalone PAT stood at INR 428 crore, while EBITDA was INR 1,396 crores. Sales volume was recorded at 824,825 tonnes and net revenue of the Company was INR 11,679 crore. With continuous focus on deleveraging, despite the challenging business environment, the company managed to reduce its total external debt (including short term debt) by INR 906 crore, which stood at INR 1,849 crore as on March 31, 2021. This also resulted in a significant saving in the interest cost, which fell by 18% over FY20 to INR 464 crore.
Management Comments:Commenting on the performance of the Company, Managing Director, JSL, Mr Abhyuday Jindal, said, “Our agile business strategy throughout the year, despite the pandemic-induced challenges, has helped JSL deliver a strong performance. A steady demand in the domestic market across segments during the fourth quarter has helped growth in sales volume and revenue. We’re now looking forward to the creation of a level playing field by the Government. Indian industries have proved in this hour of need, that domestic manufacturing not only helps generate employment, but can also support country with oxygen and health infrastructure.”