Jindal Stainless Limited, India's leading stainless steel manufacturer, has demonstrated resilience and growth in the first quarter of the fiscal year 2025. The company's board of directors announced impressive financial results for the quarter ended June 30, 2024, showcasing a robust performance despite global market challenges.
JSL reported a standalone sales volume of 578,143 metric tons, marking a 1.4% increase compared to the previous quarter. The company's net revenue reached ₹9,585 crore, up by 0.7% quarter-on-quarter. Notably, both standalone EBITDA and Profit After Tax saw significant growth, each increasing by 21.4% to ₹1,004 crore and INR 578 crore, respectively. These figures underscore JSL's ability to maintain profitability and operational efficiency in a competitive market environment.
The company's financial health remains strong, with a standalone net debt of ₹3,296 crore and a net debt-to-equity ratio of approximately 0.23. This low leverage position provides JSL with financial flexibility for future growth initiatives. On a consolidated basis, the company reported a net revenue of ₹9,430 crore and a PAT of INR 646 crore, demonstrating the strength of its overall business operations.
JSL's performance in the domestic market has been particularly noteworthy. The company's co-branding scheme, Jindal Saathi 5.0, launched in the previous quarter, has gained traction in the ornamental pipe and tube segment. This success has prompted plans to introduce similar schemes in other customer-facing segments. Additionally, the Indian government's push for quality and standardization through Bureau of Indian Standards Quality Control orders has positively impacted sales in customer-facing segments.
While export volumes remained flat due to stagnant growth in US and EU markets, JSL has been proactive in exploring new global markets. The company has successfully mitigated risks associated with the ongoing Red Sea crisis by sourcing most of its raw materials from nearby shores and domestic suppliers. This strategic approach has helped JSL maintain its competitive edge in international markets despite challenges such as extended transit times and increased freight costs.
In line with its growth strategy, JSL has announced a three-pronged expansion plan. The company has entered a joint venture to develop a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 million metric tons. Furthermore, JSL has allocated substantial investments for expanding its downstream lines and upgrading infrastructural facilities in Jajpur, Odisha. The acquisition of Chromeni Steels Private Limited in Mundra, Gujarat, adds a 600,000 metric tons per annum cold rolling mill to JSL's production capabilities, enhancing its product portfolio.
JSL's commitment to sustainability and environmental responsibility remains a core focus. The company celebrated World Environment Day with initiatives such as plastic waste collection and recycling. New policies aligning with sustainability goals were published, covering areas such as environment, biodiversity, energy, and climate change. JSL's efforts in this domain were recognized with the top spot for Best ESG Program by the Institutional Investor Research in All Asia (ex Japan) 2024 Executive Team rankings.
Looking ahead, JSL's Managing Director, Mr. Abhyuday Jindal, expressed optimism about the industry's future. He highlighted the government's decision to remove basic customs duty on ferro nickel as a positive step for the domestic industry's competitiveness. With increasing awareness of stainless steel's benefits in terms of low life-cycle costing and light-weighting properties, JSL anticipates growth in the coming fiscal years. The company's focus on operationalizing recent expansion plans, combined with government initiatives in standardization and planned co-branding schemes, positions JSL favorably to capitalize on emerging opportunities in the stainless steel market.
