India: Jindal Stainless records up to 26% y-o-y sales growth in Q2FY24

Jindal Stainless Limited (JSL) reported its Q2FY24 financial results on 19 October 2023. The company experienced improved performance due to strong domestic demand and its ability to efficiently serve global markets despite a subdued demand environment.

The demand for stainless steel within the domestic market continued to grow. In anticipation of the upcoming festive season, JSL observed increased sales in the automotive sector, as well as in other consumer-oriented segments.

Financial performance

• Standalone performance in Q2FY24: The company's standalone sales volume for Q2FY24 stood at 543,619 t, up by nearly 26% y-o-y. Net revenue was recorded at INR 9,720 crore, an increase of 14% y-o-y. Similarly, standalone EBITDA stood at INR 1,070 crore, while standalone profit after tax (PAT) was at INR 609 crore.
  
  
• Consolidated performance: Net revenue grew by 12% y-o-y to reach INR 9,797 crore. Consolidated EBITDA and PAT were recorded at INR 1,231 crore and INR 764 crore, an increase of 80% and 120%, respectively.
  
  

Major developments

• BIS certification for new stainless steel grades: The Bureau of Indian Standards (BIS) has introduced three new stainless steel grades, namely N5, N6, and N7, as part of the IS 15997 standard. These grades are specifically designed for use in utensils and kitchenware, prioritising the safety and well-being of consumers, given the critical concerns regarding health and hygiene associated with materials that come into contact with food.
  
  
• PTJSI: The company's board has given preliminary approval to explore various options, including selling, liquidating, or divesting its equity stake in PT Jindal Stainless Indonesia (PTJSI) located in Gresik, Indonesia.
  
  

This decision comes in response to challenging market conditions in Indonesia, where unfair competition with Chinese products has created an unfavourable environment. As a result, PTJSI, with a monthly installed capacity of around 12,000 mnt but operating at just 15% utilisation, is no longer financially viable.

• Sustainability and ESG:A successful trial of bio-coal at the Hisar plant's electric arc furnace achieved a remarkable 78% carbon recovery rate, leading to a substantial annual reduction of 12,750 tonnes in carbon emissions. Additionally, the company joined Responsible Steel, a global non-profit organisation promoting multi-stakeholder standards and certifications, highlighting its commitment to sustainability and ESG initiatives.