Jindal Stainless Limited Financial Results for the Quarter ended September 30, 2022

Q2FY23 Highlights

Standalone performance:·Revenue at INR 5,442 crores; up by 13% YoY

·Revenue at INR 5,442 crores; up by 13% YoY

·EBITDA at INR 411 crores; down by 42% YoY

·Sales volume registered at 270,360 metric tonnes

·PAT at INR 189 crores; down by 48% YoY

·Net lenders’ debt stood at INR 1,779 crores

Consolidated performance:

·Revenue stood at INR 5,605 crores; up by 11% YoY

·EBITDA at INR 358 crores; down by 52% YoY

·PAT at INR 152 crores; down by 63% YoY

Gurugram, November 3, 2022: The Board of Directors of Jindal Stainless Limited (JSL) announced the unaudited financial results for the quarter ended September 30, 2022. JSL’s standalone revenue, EBITDA, and PAT stood at INR 5,442 crores, INR 411 crores, and INR 189 crores respectively during Q2FY23. The Company recorded a sales volume of 270,360 metric tonnes (MT). JSL’s net external debt reduced to INR 1,779 crores as on September 30, 2022, and its net debt-to-equity ratio improved to ~0.5, which is among the best in the metal sector. On a consolidated basis, JSL’s revenue stood at INR 5,605 crores, EBITDA at INR 358 crores, and PAT at INR 152 crores during Q2FY23.

 Globally, demand for stainless steel decelerated throughout Q2FY23. This can be attributed to subdued demand in real estate and construction sectors, high energy costs, and aggressive rate hikes by FED, among other reasons.

On the domestic front, demand from end-user segments continued to be strong. With JSL’s agility in sales planning, the Company enhanced its focus on domestic sales. As a result, ~95% of JSL’s total sales volume in Q2FY23 catered to domestic customers. This agile approach also focused on continued efforts for development of new grades aligned with evolving customer requirements, timely deliveries, and proactive redressal of customer concerns. The Company’s MoU scheme in FY23 and its focus on acquiring new OEM customers garnered positive sentiments. These factors together led to an increase in JSL’s sales volume.

Demand continued to remain steady in the automobile sector during Q2FY23, registering a growth of nearly 28% on QoQ basis. The Company supplied new stainless steel grades including 432, along with existing grades like 436L and 439 to auto majors. In the ornamental pipe and tube (P&T) segment, average sales in Q2FY23 increased by 41% over Q1FY23. Demand was also strong in the lift and elevators segment.

Indian Railways continued its thrust on increasing its share of business in freight. This led to a 25% jump in JSL’s sales to the railway wagon segment during Q2FY23. Going forward, Vande Bharat trainsets will remain a major focus area for Railways. It is also heartening to note that India is expected to invest INR 80,000 crore in metro projects over the next 5 years.