Jindal Stainless Q1 results: Co reports PAT of Rs 306 cr; announces Rs 2,150 cr expansion plan

Mumbai: Jindal Stainless Ltd’s consolidated profit after tax was recorded at Rs 305.84 crore during the first quarter of the financial year as against a net loss of Rs 124 crore in the same period last year, mainly on account of rising in pent-up demand and the company’s cost management measures.

“With the post-pandemic recovery, rigorous internal efficiencies, ongoing merger, and slated expansion plans…JSL is geared to maximise the value for all its stakeholders,” said JSL’s managing director, Abhyuday Jindal.

The company’s standalone net profit as of the quarter was at Rs 271.4 crore, up 2% quarter on quarter. In the March quarter, the company reported a standalone net profit of Rs 265 crore. The sales volume grew by 168% year on year to 237,852 tonnes in Q1FY22. The company’s earnings before interest, taxes, depreciation and amortization were at Rs 601 crore, 9.5 times higher than the previous year’s profit of Rs 64 crore.

The company’s net revenue was recorded at Rs 4,033 crore, up 193% year-on-year.

The company also announced plans to double its capacity in the next 18 months.

“The estimated CAPEX for the brownfield expansion is Rs 2,150 crore, which is less than one-third of greenfield CAPEX cost for the corresponding enhancement,” the company said.

The company will be expanding its steel melting capacity and will focus on backward and forward linkages.

The company’s steel melting capacity will grow from the existing 1.10 MTPA (million tonnes per annum) to 2.10 MTPA – at an estimated CAPEX of Rs 530 crore, which will be completed by Q3FY23. It has planned a Commissioning Combo Line for downstream expansion, with an investment of Rs 1,250 crore, which will be completed by Q4 FY23. The company is also expanding its Ferrochrome capacity from 0.25 MTPA to 0.35 MTPA to scale up backward integration and cost efficiency at an estimated CAPEX of Rs 315 crore.

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The remaining CAPEX will be expended on enhancing quality assurance for new generation grades in high-end segments, balancing of units, and other necessary improvement activities, the company said.

“Our plan for the near future is unleashed today; we are going to double our melt capacity in the next 18 months. The expansion will strengthen our ability to serve domestic and international customers across different market segments,” said Abhyuday Jindal.

JSL also reduced its long-term external debt by Rs 210 crore.

“Net Lenders’ debt (excluding group company

’s debt) as of June 30, 2021, stood at Rs 1,445 crore. During Q1FY22, interest cost reduced by 38% over CPLY to Rs 81 crore,” the company said in a media statement.



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