On October 17, 2024, Jindal Stainless Limited announced its financial results for the second quarter of fiscal year 2025. The company reported standalone net revenue of INR 9,746 crore, reflecting a 1.68% increase quarter-on-quarter. Standalone earnings before interest, taxes, depreciation, and amortization stood at INR 1,007 crore, marking a slight increase of 0.25% QoQ. Profit after tax also saw a rise, reaching INR 589 crore, up by 1.90% QoQ. Meanwhile, net debt for the quarter was recorded at INR 2,580 crore, with a net debt-to-equity ratio improving to approximately 0.2.
In terms of consolidated performance, Jindal Stainless achieved a net revenue of INR 9,777 crore, which is a 3.68% increase QoQ. However, consolidated EBITDA declined by 2.08% to INR 1,186 crore, while PAT fell by 5.67% to INR 609 crore. These figures reflect the company’s ongoing adaptation to market conditions, with challenges particularly pronounced in the export segment.
The company’s standalone sales volume for Q2FY25 was recorded at 564,627 metric tons, a decrease of 2.34% QoQ. This decline is attributed to weaker than expected demand recovery in export markets. However, the domestic market exhibited steady growth, with demand from sectors such as pipes, tubes, and railway coaches remaining strong. Ahead of the festive season, the white goods segment showed improved performance, and there is optimism for sustained growth in this area as well as in the two-wheeler segment.
Despite these positive trends in domestic demand, Jindal Stainless faced challenges from increasing imports of subsidized and dumped stainless steel, particularly from China and Vietnam. In the first half of FY25, imports from Vietnam surged by nearly 75% compared to the same period last year. This influx has created a competitive disadvantage for Indian manufacturers, especially within the micro, small, and medium enterprises sector. Nevertheless, Jindal Stainless managed to increase its market share by offering competitive pricing and improving its delivery cycle.
While the export market remained sluggish due to geopolitical complexities, there was a noted increase in volumes to the United States, Middle East, and South Korea. In contrast, exports to the European Union saw a decline, largely driven by slower end-user demand and elevated shipping costs. The company's export segment accounted for 10% of its sales, unchanged from the previous quarter but down from 13% a year ago.
Management expressed optimism about the future. Abhyuday Jindal, Managing Director of Jindal Stainless, highlighted the importance of India's growth story as a driving force for domestic manufacturing. He underscored the need for policy measures to address dumping practices that disrupt the market, ensuring a fair playing field for Indian manufacturers. Jindal Stainless is positioned to leverage the domestic market's potential while navigating the complexities of international trade.
