Monthly
Stainless Trivia
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Q3FY22 Highlights |
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Consolidated performance: Revenue stood at INR 5,670 crore, up by 58% over Q3FY21 EBITDA at INR 797 crore; up by 68% over Q3FY21 PAT at INR 442 crore; up by 160% over Q3FY21 Standalone performance: Sales volume registered at 247,607 tonnes, down by 1% compared to Q3FY21 Revenue at INR 5,368 crore, up by 56% over Q3FY21 EBITDA at INR 739 crore, up by 66% over Q3FY21 PAT recorded at INR 372 crore, up by 145% over Q3FY21 Net lenders debt stood at INR 1,762 crore |
New Delhi, February 7, 2022: The Board of Directors of Jindal Stainless Limited (JSL) announced the unaudited financial results of the Company for Q3FY22 here today. JSL continued to register profitable growth by harnessing export markets, while maintaining total sales level on a YoY basis. A sharp product mix, attuned to market demands, helped the Company remain agile and responsive to customer requirement. On a consolidated basis, JSL recorded a revenue of INR 5,670 crores during Q3FY22. EBITDA and PAT stood at INR 797 crore and INR 442 crore respectively. JSL’s standalone revenue, EBITDA and PAT grew by 56%, 66% and 145% respectively. Net external debt stood at INR 1,762 crore as on December 31, 2021, with a robust debt/equity ~ 0.7.
The Company maintained its stronghold in the lifts and escalators segment. Riding on a bullish demand from the industrial and construction sectors, JSL also worked closely on various government infrastructure projects where stainless steel is a preferred alternative on a lifecycle costing approach. As part of its drive to increase its proportion of value-added products, JSL upped sales of its special grades (such as Duplex, Super Austenitic) and Chequered Plates. Company supplied customized and value-added grades for Desalination Plant at Dahej, Assam Bio refinery, HURL Fertilizer plants, and fleet mode nuclear projects, among others. However, shortage of semiconductor in the passenger vehicle segment and moderate demand from two-wheeler segment led to slight dip in the automotive sector during the quarter. The pipe and tube segment also witnessed a minor decline owing to a lower than expected market demand and higher raw material prices.
In order to counter imports of subsidized stainless steel from China and Indonesia, which have practically doubled on a year-to-date basis, JSL strategically increased its exports share from 15% in Q3FY21 to 26% during Q3FY22. The domestic-export share of sales volumes during the quarter, on a YoY basis, was as follows:
Geographical Segment | Q3FY22 | Q2FY22 | Q3FY21 |
Domestic | 74% | 77% | 85% |
Export | 26% | 23% | 15% |
Other key developments:
Financial Performance Summary (Figures in INR crore):
Particulars | Consolidated | |||||
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Q3FY22 | Q2FY22 | Change | 9MFY22 | 9MFY21 | Change | |
SS Sales Volume (MT) | 2,47,607 | 2,56,664 | (4)% | 7,42,123 | 5,69,726 | 30% |
Total Revenue (net) | 5,670 | 5,027 | 13% | 14,729 | 8,275 | 78% |
EBITDA | 797 | 748 | 7% | 2,146 | 882 | 143% |
PAT | 442 | 412 | 7% | 1,159 | 127 | 814% |
Particulars | Standalone | |||||
Q3FY22 | Q2FY22 | Change | 9MFY22 | 9MFY21 | Change | |
SS Sales Volume (MT) | 2,47,607 | 2,56,664 | (4)% | 7,42,123 | 5,69,726 | 30% |
Total Revenue (net) | 5,368 | 4,815 | 11% | 14,025 | 7,870 | 78% |
EBITDA | 739 | 711 | 4% | 2,030 | 874 | 132% |
PAT | 372 | 363 | 3% | 1,006 | 163 | 517% |
On a sequential quarter basis, revenue and PAT in Q3FY22 grew by 11% and 3% respectively, in line with global commodity price increase. Even with 36% of domestic market captured by imports, JSL managed to maintain its profitability with better product mix and export planning. The interest cost stood at INR 89 crore in Q3FY22 vs INR 79 crore in Q2FY22 due to higher working capital utilization during the Q3.
On a 9-month basis, 9MFY22 PAT stood at INR 1,006 crores, while EBITDA was INR 2,030 crores. Sales volume was recorded at 742,123 tonnes and net revenue of the Company was INR 14,025 crores.
Management Comments:
Commenting on the performance of the Company, Managing Director, JSL, Mr Abhyuday Jindal, said, “An intelligent product mix and the agility to step up exports helped JSL in maintaining profitability despite stiff and unfair competition from Chinese and Indonesian imports. We are always on the lookout for new avenues for stainless steel applications that can keep us ahead of competition and boost our share in domestic and export markets. Sharp focus on financial prudence and strong operating fundamentals have served us well, and we will continue to strategize business as per market dynamics.”