Jindal Stainless Limited (JSL) Q3FY24 Financial Results

Last Updated on January 19, 2024 by ethinos

Q3FY24 Highlights

Standalone Performance

1. Sales Volume: Achieved 9% YoY growth, reaching 5,12,015 MT.

2. Net Revenue: Recorded an increase of 1% YoY, totaling INR 9,088 crores.

3. EBITDA: Demonstrated strong performance with an 8% YoY increase, reaching INR 1,021 crores.

4. PAT (Profit After Tax): Exhibited robust growth, surging by 41% YoY to INR 779 crores.

5. Net Debt: Stood at INR 3,085 crores.

6. Net Debt-to-Equity Ratio: Maintained at approximately 0.23.

Consolidated Performance

1. Net Revenue: Achieved INR 9,127 crores.

2. EBITDA: Impressive growth of 43% YoY, reaching INR 1,246 crores.

3. PAT: Registered a substantial increase of 35% YoY, reaching INR 691 crores.

1. Standalone Sales Volume

• Stood at 5,12,015 metric tonnes (MT), reflecting a robust YoY growth of nearly 9%.
• Experienced a planned 6% QOQ dip due to maintenance for plant upgrades.

2. Standalone Net Revenue (Q3FY24):

• Recorded at INR 9,088 crores, signalling a marginal 1% YoY increase.

3. Standalone EBITDA and PAT (Q3FY24):

•  EBITDA reached INR 1,021 crores.
• PAT amounted to INR 779 crores.

4. Financial Ratios (Q3FY24):

•  Net debt: INR 3,085 crores.
• Net debt-to-equity ratio maintained at ~0.23.
• Net debt/EBITDA ratio for the quarter stood at ~0.72.

5. Consolidated Performance (Q3FY24):

• Consolidated net revenue: INR 9,127 crores.
• Consolidated EBITDA: INR 1,246 crores.
• Consolidated PAT: INR 691 crores.

6. Market Dynamics:

• Strong domestic demand for stainless steel, driven by growth in the auto sector and robust performance in the decorative pipe and tube sector.
• Commencement of production at the newly acquired Ghaziabad facility to expand product offerings with Long products like wire rods and rebars.

7. Global Challenges and Achievements:

• Despite challenges like pricing pressure, destocking, and geopolitical issues, the company maintained sales outside India.
• JSL showcased decarbonisation initiatives at UN COP28 climate summit, projecting the achievement of mid-term carbon emissions reduction target before 2035.

8. Quality Norms and Imports:

• Implementation of mandatory quality norms by the Bureau of Indian Standards (BIS) curtailed influx of subsidised and substandard foreign imports in the 200 series grades.
• Sharp increase (73%) in dumping of the 300 series, particularly from China and Vietnam.

Domestic/export mix

Geographical Segment	Q3 FY2024	Q2 FY2024	9MF FY2024
Domestic	88%	87%	86%
Export	12%	13%	14%

Financial performance summary (figures in INR crore)

	Standalone
Particulars	Q3 FY24	Q2 FY24	Change (QoQ)	Q3 FY23	Change (YoY)	9MFY24	9MFY23	Change (YoY)
SS sales volume (MT)	5,12,015	5,43,619	-6%	4,67,879	9%	16,04,248	12,56,772	28%
Net Revenue	9,088	9,720	-7%	9,001	1%	28,835	25,586	13%
EBITDA	1,021	1,070	-5%	947	8%	3,208	2,470	30%
PAT	779	609	28%	552	41%	2,054	1,355	52%

	Consolidated
Particulars	Q3 FY24	Q2 FY24	Change (QoQ)	Q3 FY23	Change (YoY)	9MFY24	9MFY23	Change (YoY)
Net Revenue	9,127	9,797	-7%	9,063	1%	29,108	25,932	12%
EBITDA	1,246	1,231	-1%	868	43%	3,669	2,442	50%
PAT	691	764	-10%	513	35%	2,193	1,368	60%

Additional Check: Jindal Stainless Limited Share Price

Key Developments:

1. Jindal United Steel Limited (JUSL)

• Received nearly INR 200 crores as interim dividend.

2. Rabirun Vinimay Private Limited Acquisition

• Acquired Rabirun Vinimay Private Limited at a cost of INR 96 crores, marking entry into the pipe and tube segment with a capacity of 4,000–5,000 tonnes/month.

3. Credit Ratings

• Long-term bank facilities and debt program rating revised from CRISIL AA-/Positive to CRISIL AA/Stable.
• Short-term bank facilities reaffirmed at CRISIL A1+.

4. PT Jindal Stainless, Indonesia (PTJSI)

• Consent for liquidation due to lack of viability and competition with Chinese products.

5. Nickel Pig Iron Facility (NPI)

• Expected commissioning in early H1FY25, reaching full capacity within three subsequent quarters.

6. Iberjindal Acquisition

•  In-principle approval for acquiring a 100% stake in Iberjindal S L, a subsidiary based in Spain.

7. Research and Development (R&D)

• Commercial production of nickel alloy clad plate.
• Development of duplex stainless steel grade with superior corrosion resistance.
• Customised stainless steel grades for specific applications.

8. Jindal Defence and Aerospace (JDA)

• Successful development and supply of various steel grades for missile components, launcher, anti-tank guided missiles, and satellite launch vehicles.

9. Jindal Coke Limited

• In-principle approval for divestment of 26% stake due to misalignment with core business activities.

10. Sustainability and ESG

• Clean electricity generation through various solar initiatives.
• Digitalization for sustainability data management.
• Biofuel utilisation reducing carbon emissions.
• Collaboration with TERI for energy efficiency and decarbonization.

11. Stainless Academy

• Conducted 46 fabricator training programs, attended by over 4,800 people.

12. Awards and Recognition

• Felicitated by BHEL for developing cladded plates.
• Multiple awards for excellence in quality management, environmental and sustainability excellence, risk management, and more.

About Jindal Stainless Limited 

Jindal Stainless, India’s foremost stainless steel manufacturer, reported an impressive annual turnover of INR 35,700 crore (USD 4.30 billion) in FY23 and is strategically expanding to attain a 3 million tonnes annual melt capacity by FY24. Operating two manufacturing facilities in Odisha and Haryana, the company has a global presence across 15 countries with a service centre in Spain, complemented by ten sales offices and six service centres in India. Established in 1970, Jindal Stainless, ranking among the world’s top five stainless steel players (excluding China), emphasises integrated operations for cost efficiency. Committed to innovation, social responsibility, and a sustainable future, JSL employs environmentally responsible practices, using scrap in electric arc furnaces to achieve a circular economy and aims to slash carbon emission intensity by 50% before 2035, targeting Net Zero by 2050.

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Source : https://www.bseindia.com/xml-data/corpfiling/AttachLive/2bb9aab9-fcbd-44dc-8343-530b42d13881.pdf