Jindal Stainless records PAT of Rs 669 crore in Q4 FY22

Jindal Stainless reported 152% rise in standalone net profit to Rs 669 crore in Q4 FY22 from Rs 265 crore in Q4 FY21.

Total revenue during the period under review was Rs 6,287 crore, up 65% YoY. Stainless Steel sales volume improved in Q4 FY22 to 269,168 million tonnes (MT), higher by 6% as compared with 255,099 MT in Q4 FY21.

Despite volatility and global disruptions in raw material supply and logistics, the company effectively doubled its export sales proportion to 32% of total sales volumes in Q4 FY22 as compared to 16% in Q4 FY21.

Net external debt stood at Rs 1,546 crore as of 31 March 2022, with the debt-to-equity ratio reduced to approximately 0.6. Interest cost was reduced by 25% to Rs 68 crore for Q4FY22 as compared to the corresponding period last year (CPLY).

EBITDA improved by 46% to Rs 761 crore in Q4 FY22 from Rs 521 crore in Q4 FY21.

The company reported a 156% increase in consolidated net profit to Rs 750 crore on a 68% rise in total revenue to Rs 6,564 crore in Q4 FY22 over Q4 FY21.

For the full year ended on 31 March 2022, consolidated revenue stood at Rs 21,223 crore (up 74% YoY) while net profit was at Rs 1,909 crore (up 355% YoY).

The country's largest stainless steel maker said that key domestic sectors like elevators and escalators, railway wagons, railway coaches, and metros continued to register a steady demand.

JSL is closely working with major domestic players across these segments to customise products as per their requirements. The company supplied various critical grades like super duplex and cobalt restricted stainless steel for various indigenous nuclear applications and key fertilizer projects, the company said in a statement.

Jindal Stainless said that the dumping of imported and subsidized material from China and Indonesia led to a muted domestic demand and reduced price levels. This also resulted in the share of imports rising to 36% of demand in Q4 FY22 as compared to 24% in Q4 FY21.

The international nickel and ferro-chrome prices jumped by 52% and 121% respectively in Q4FY22 on a YoY basis. The ongoing Russia-Ukraine unrest adversely impacted the global supply chain and commodity prices.

"On the domestic front, Chinese and Indonesian imports of subsidized stainless steel products continued to disrupt the Indian market. It is estimated that imports from China and Indonesia rose by 147% and 280% respectively in FY22 on a CPLY basis, it added.

The board of directors of JSL approved modification in the existing dividend policy of the company providing that efforts will be made to target dividend up to 20% of PAT of the company on a progressive basis in the future.

Abhyuday Jindal, managing director, JSL, said: JSL's strategic decision to focus on export sales and strengthen its niche value-added product portfolio resulted in a robust performance.

We continue to work closely with our customers to develop new products and the ecosystem, for catering to new opportunities of stainless steel applications in infrastructure and emerging focused sectors like Green Hydrogen and ethanol.

Jindal Stainless is one of the largest domestic stainless steel producers. The company manufactures stainless steel slabs and hot rolled/cold rolled coils and sheets.

The scrip fell 1.72% to end at Rs 179.75 on the BSE yesterday.

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