financial results

Jindal Stainless announces last quarter’s financial results

Jindal Stainless Limited announced its Q2FY25 financial results, reporting a standalone net revenue of Rs 9,746 crore.

Jindal Stainless Limited announced its Q2FY25 financial results, reporting a standalone net revenue of Rs 9,746 crore. The company’s standalone EBITDA stood at Rs 1,007 crore, while the standalone profit after tax (PAT) reached Rs 589 crore. The company’s net debt for the quarter was recorded at Rs 2,580 crore, with a debt-to-equity ratio of ~0.2 and net debt/EBITDA improving to ~0.7. Consolidated net revenue grew by 3.68 per cent QoQ to Rs 9,777 crore, with consolidated EBITDA and PAT at Rs 1,186 crore and Rs 609 crore, respectively.

Sales volume for Q2FY25 was 5,64,627 MT, a slight decline of 2.34 per cent QoQ, mainly due to sluggish demand in export markets. However, domestic demand remained steady, driven by sectors like pipes and tubes, elevators and railway coaches. The white goods segment saw better-than-usual performance ahead of the festive season.

Despite challenges from rising imports of subsidised stainless steel, particularly from China and Vietnam, Jindal Stainless managed to increase its market share through competitive pricing and improved delivery. Export markets faced geopolitical challenges, with mixed results across regions. Nonetheless, demand for stainless steel is expected to remain stable, supported by ongoing national infrastructure projects.

Geographical segment Q2FY25 Q1FY25 Q2FY24
Domestic 90% 90% 87%
Export 10% 10% 13%

Financial performance summary (figures in INR crore)

Particulars Standalone
Q2FY25 Q1FY25 Change
(Q-O-Q)
Q2FY24 Change
(Y-O-Y)
H1FY25 H1FY24 Change
SS Sales Volume (MT) 5,64,627 5,78,143 -2.34% 5,43,619 3.86% 11,42,770 10,92,232 4.63%
Net Revenue 9,746 9,585 1.68% 9,720 0.26% 19,331 19,748 -2.11%
EBITDA 1,007 1,004 0.25% 1,070 -5.88% 2,011 2,188 -8.06%
PAT 589 578 1.90% 609 -3.30% 1,168 1,275 -8.43%
Particulars Consolidated
Q2FY25 Q1FY25 Change
(Q-O-Q)
Q2FY24 Change
(Y-O-Y)
H1FY25 H1FY24 Change
Net Revenue 9,777 9,430 3.68% 9,797 -0.21% 19,207 19,981 -3.88%
EBITDA 1,186 1,212 -2.08% 1,231 -3.58% 2,398 2,423 -1.02%
PAT 609 646 -5.67% 764 -20.24% 1,255 1,502 -16.39%

 

Other key developments:

1. Commissioning of NPI facility in Indonesia: Jindal Stainless announced the commissioning of its Nickel Pig Iron smelter facility in August 2024, eight months ahead of the scheduled timeline. The facility is located in an industrial park in Halmahera Islands, Indonesia.

2. Vande Bharat sleeper coaches: The company supplied high-strength tempered 301L grade austenitic stainless steel for the Vande Bharat sleeper coaches, the prototype of which was unveiled by the Minister of Railways, Shri Ashwini Vaishnaw, in Bengaluru.

3. Five-star rating from the British Safety Council: Jindal Stainless’ Hisar plant received a five-star rating for occupational health and safety from the British Safety Council. This recognition demonstrates the company’s dedication to creating a safe and healthy work environment for its employees.

4. Stainless Steel Executive of the Year Award to Chairman: Steel and Metals Market Research (SMR) GmbH, an international independent market research organisation, conferred the Stainless Steel Executive of the Year 2024 Award to Ratan Jindal, Chairman, Jindal Stainless,.

5. Collaboration with CJ Darcl: In a significant move towards sustainable mobility, Jindal Stainless collaborated with CJ Darcl Logistics Limited (CJ Darcl), one of India’s leading logistics providers, to develop lightweight and sustainable stainless steel containers.

6. Defence:
I. The company was accredited by BrahMos Aerospace Pvt Ltd as a qualified vendor for the manufacturing and supply of steel sheets and plates from its Hisar unit. This approval came after a stringent quality and credentials audit conducted by BrahMos to enlist Jindal Stainless, Hisar, as a supplier for its cruise missiles.
II. Jindal Stainless supplied austenitic stainless steel and low-alloy steel for satellite launch vehicle applications to the Indian Space Research Organisation (ISRO).
III. For the first time ever, the company also supplied low-alloy steel sheets to Hindustan Aeronautics Limited for motor casings used in small satellite launch vehicles.

7. Sustainability and ESG:
I. Jindal Stainless embarked on a transformative ESG Journey with ERM, a leading global management consultant, to make sustainability a core pillar of our growth & strategic vision.
II. The share of renewable energy increased significantly, rising from 1 per cent to 25 per cent QoQ, leading to a substantial reduction in Scope 2 emissions. In Q2FY25, a total of 50.58 million units (KWh) of renewable energy was consumed from the grid. As a result, the total emission reduction during Q2 amounted to 35,913 MT.
III. Jindal Stainless published its 2nd BRSR Report along with a reasonable assurance of the report as per ISAE 3000.
IV. The company successfully installed a 2 MW solar rooftop plant at Hisar. This marks a key step forward in meeting the overall project goals and showcases steady progress in renewable energy deployment.

1. R&D: Grade 409L was produced for the first time in 12.6 mm thickness for the automobile sector.

2. Awards and Recognition:
I. Jindal Stainless received the Global Environment Award 2024 by Energy and Environment Foundation in Outstanding Achievement in Green Hydrogen and Energy Efficiency.
II. The Hisar and Jajpur plants won the 25th CII National Award for Excellence in Energy Management 2024 by CII Hyderabad.
III. The Hisar and Jajpur plants won the Best Energy Efficient Organisation (Large Sector) and Effective Implementation of ISO 50001 at the 8th CII National Energy Circle Competition 2024.

Commenting on the performance of the company, Abhyuday Jindal, Managing Director, Jindal Stainless, said, “India’s growth story is the single biggest driver of domestic manufacturing, especially in times of global uncertainties causing continued slowdown in exports. We appreciate the government’s renewed focus to use stainless steel in bridges and infrastructural applications in corrosive environments to prevent loss of life and property. The domestic market has always been our focus area, and we expect volume growth to pick up going forward. We also hope for a resolution to the ongoing dumping of subsidised and substandard imports from China and Vietnam, disturbing the level playing field for Indian manufacturers.”

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