Jindal Stainless Limited- Q2 Results

Introduction

Jindal Stainless Limited was founded by Shri O P Jindal in 1970, and today, the company has become India’s leading stainless steel manufacturer. Owing to its diverse product range and integrated operations, Jindal Stainless Limited has cemented its place as one of the top five stainless steel companies (excluding China) in the world. Apart from establishing two stainless steel manufacturing plants in the country, JSL also has an overseas unit in Indonesia to serve Southeast Asia and nearby markets.

Jindal Stainless announced its financial results and performance for the second quarter of this fiscal year on October 19th. The company fared remarkably well during Q2, with net profit surging 120% during the quarter under review. Let us take a closer look at its performance highlights and key figures.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights

• Jindal Stainless Limited reported a 120% YoY increase in its consolidated net profit at ₹764.03 Cr.
• The company also reported a 12% YoY growth in its consolidated revenue from operations at ₹9,797.04 Cr during the quarter under review.
• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 80% YoY and stood at ₹1,231 Cr.
• JSL’s total income rose to ₹9,828.97 Cr during Q2 of FY 2023-24, up from ₹8,776.61 Cr that was reported in the corresponding period last year.

On October 19th, JSL reported an impressive 120% YoY increase in net profit during the second quarter of the fiscal year. The net profit surged to ₹764.03 Cr compared to ₹347.02 Cr, which was reported during the same period last year.

The company rode on the government’s backing for stainless steel in strategic sectors, resulting in its domestic sales going up by 15% YoY. Moreover, Jindal Stainless also reported a 12% growth in its consolidated revenue from operations at ₹9,797.04 Cr during the second quarter, up from ₹8,750.86 Cr reported during Q2 of FY 2022-23.

In the regulatory filing, the company also announced that its total income rose to ₹9,828.97 Cr in Q2 of this fiscal year compared to ₹8,776.61 Cr during the corresponding period last year. At the operating level, JSL’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 80% YoY and stood at ₹1,231 Cr.

The company also expressed its confidence in the National Stainless Steel policy, which will see an increase in the per capita consumption of stainless steel in the country.

Additional Read: Jindal Stainless Ltd

Management Commentary

Major Announcements

• Jindal Stainless Limited’s board approved the proposal of exploring options to sell, liquidate, or divest equity stake in its subsidiary, PT Jindal Stainless, Indonesia. The company reached this decision because of the unsuitable market conditions in Indonesia.
• The company’s Board of Directors approved the payment of an interim dividend at ₹1 per equity share (face value of ₹2 each) for the fiscal year.

Jindal Stainless Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹16,919.06 Cr	₹20,056.17 Cr
Revenue from operations	₹16,869.45 Cr	₹19,981 Cr
Total expenses	₹15,822.66 Cr	₹18,223.19 Cr
Profit before tax	₹1,131.76 Cr	₹1,973.75 Cr
Profit after tax	₹854.91 Cr	₹1,501.61 Cr
Total comprehensive income	₹858.64 Cr	₹1,500.27 Cr

Jindal Stainless Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹10,227.20 Cr	₹9,828.97 Cr
Revenue from operations	₹10,183.96 Cr	₹9,797.04 Cr
Total expenses	₹9,279.15 Cr	₹8,944.04 Cr
Profit before tax	₹980.61 Cr	₹993.14 Cr
Profit after tax	₹737.58 Cr	₹764.03 Cr
Total comprehensive income	₹735.04 Cr	₹765.23 Cr

Jindal Stainless Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹16,628.96 Cr	₹19,825.86 Cr
Revenue from operations	₹16,584.73 Cr	₹19,747.69 Cr
Total expenses	₹15,551.76 Cr	₹18,108.56 Cr
Profit before tax	₹1,077.20 Cr	₹1,717.3 Cr
Profit after tax	₹802.84 Cr	₹1,275.06 Cr
Total comprehensive income	₹802.82 Cr	₹1,275.06 Cr

Jindal Stainless Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹10,071.65 Cr	₹9,754.21 Cr
Revenue from operations	₹10,027.34 Cr	₹9,720.35 Cr
Total expenses	₹9,176.36 Cr	₹8,932.20 Cr
Profit before tax	₹895.29 Cr	₹822.01 Cr
Profit after tax	₹665.66 Cr	₹609.40 Cr
Total comprehensive income	₹665.66 Cr	₹609.40 Cr

Also Read: Jindal Group

Key Consolidated Ratios

Particulars	Q2 FY 2023-24	Q1 FY 2023-24	Q2 FY 2022-23
Debt-equity ratio (in times)	0.43	0.31	0.39
Debt service coverage ratio (in times)	5.36	9.51	6.17
Interest service coverage ratio (in times)	8.11	12.41	8.13
Current ratio (in times)	1.42	1.29	1.41
Current liability ratio (in times)	0.60	0.72	0.66
Total debts to total assets (in times}	0.19	0.14	0.18
Operating margin (%)	12.56%	11.71%	7.82%
Net profit margin (%)	7.80%	7.24%	3.97%

Stock Performance

On the eve of Jindal Stainless Limited announcing its second quarter results for FY 2023-24 on October 20th, the company’s shares opened at ₹466.05. During the day, it rose significantly by 4.44% and closed at ₹470.00 apiece on the BSE.

About the Company

Jindal Stainless Limited (JSL), which was established in 1970, is the country’s first and largest ‘Swadeshi’ stainless steel company and serves customers across 60 countries. The company boasts an annual melt capacity of 3 MT, and its product range includes coils, sheets, stainless steel slabs, and coin blanks. JSL also has an annual turnover of around ₹35,700 Cr and currently has two stainless steel manufacturing plants in India.

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Sources:

https://www.bseindia.com/xml-data/corpfiling/AttachLive/bb4f563f-0604-4ee5-b6ad-41bf60e7e6de.pdf

https://www.jindalstainless.com/press-releases/jindal-stainless-announces-financial-results-for-the-quarter-ended-september-30-2023/

https://d3rh8m1rlgcp00.cloudfront.net/wp-content/uploads/2023/10/JSLEarningsPresentation.pdf