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Financial Results for the Quarter and Half-year ended September 30, 2021
Sales volume registered at 256,664 tonnes, up by 8% over Q1FY22
Revenue at INR 4,815 crore, up by 25% over Q1FY22
EBITDA at INR 711 crore, up by 23% over Q1FY22
PAT recorded at INR 363 crore vs INR 271 crore in Q1FY22, up by 34%
Net lenders debt stood at INR 1,564 crore
Interest cost reduced by 37% YoY
Revenue stood at INR 5,027 crore, up by 25% over Q1FY22
EBITDA at INR 748 crore; up by 24% over Q1FY22
PAT at INR 412 crore; up by 35% over Q1FY22
New Delhi, October 26, 2021: The Board of Directors of Jindal Stainless Limited (JSL) today approved the unaudited financial results of the Company for Q2FY22. An overall healthy demand environment post the second wave of COVID in Q1FY22 pulled up sales volume by 8% over Q1FY22, to 256,664 tonnes in Q2FY22. The upward rally in prices of input materials continued unabated throughout the second quarter. The average LME prices of Nickel and Ferro-chrome in Q2FY22 climbed by 10% and 21% respectively over Q1FY22, which had a positive impact on inventory valuation. This, along with an improved volume mix, led to a 23% increase in EBITDA in Q2FY22 over the sequential quarter. On a standalone basis, JSL’s EBITDA and profit after tax (PAT) stood at INR 711 crore and INR 363 crore respectively.
On a standalone basis, revenue for the half-year ending September 30, 2021 stood at INR 8,656 crore. EBITDA and PAT stood at INR 1290 crore and INR 634 crore respectively. Net Lenders’ debt (excluding group company Jindal Stainless (Hisar) Limited’s (JSHL’s) debt) as on September 30, 2021 stood at INR 1,564 crore. With focused capital allocation, the interest cost during H1 FY22 reduced by 37% to INR 160 crore over H1 FY21.
All major end-use segments like process industry, Pipe & Tube, Railways & Wagons, and Metro Rail grew during the quarter keeping the stainless steel demand firm. As general manufacturing picked-up pace during the quarter, demand for special grades like duplex and super austenitic, where JSL is an established supplier, also gained momentum. Auto segment sales remained weak on account of the long waiting period necessitated by semiconductor shortage. Despite prevailing logistical challenges due to container scarcity, JSL maintained strong operational performance through advance planning and strategic sourcing of raw materials.
While maintaining major focus on the domestic markets, the agile business strategy helped the Company increase its exports percentage from 20% in Q1FY22 to 23% during Q2FY22 to counter the continual surge in imports of stainless steel from China and Chinese-funded investments in Indonesia. The domestic-export share of sales volumes during the quarter, on a sequential and YoY basis, was:
Other key developments:
Financial Performance Summary (Figures in INR crore):
|Q-o-Q Comparison||Y-o-Y Comparison||Q-o-Q Comparison||Y-o-Y Comparison|
|SS Sales Volume (MT)||2,56,664||2,37,852||8%||2,30,350||11%||2,56,664||2,37,852||8%||2,30,350||11%|
|Total Revenue (net)||4,815||3,841||25%||3,156||53%||5,027||4,033||25%||3,314||52%|
On a consolidated level, Q2FY22 PAT stood at INR 412 crore, while EBITDA was INR 748 crore and net revenue of the Company was INR 5,027 crore. In its journey towards IR 4.0, JSL implemented a SAP-enabled digital transport management system. This is expected to bring about significant efficiency improvement in the overall supply chain through real-time exchange of information across the entire gamut of stakeholders and consequent reduction in turn-around time.
Management Comments:Commenting on the performance of the Company, Managing Director, JSL, Mr Abhyuday Jindal, said, “Economic recovery has led to improved sentiment in the overall business outlook. Once again, JSL has delivered robust performance which underlines our solid business fundamentals. Despite facing uncertainty and unprecedented challenges in logistics, we’ve been able to service our customers in India and abroad. At a time when the market is swamped with imports from China and Indonesia, the industry is looking forward to the government’s timely action to encourage domestic manufacturing.”