Tag Archive for stainless

Jindal Stainless Limited consolidates its position, posts 2x jump in Q1 PAT

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

1 FY 19 key highlights

                                                                                                                   Standalone (in Rs crore)

Particulars

Q1 FY 18-19

Q1  FY17-18

 Growth

PAT

91

41

119%

Net Revenue

3,147

2,015

56%

EBIDTA

375

251

50%

After registering a robust turnaround in FY18, Jindal Stainless Limited (JSL) achieved a strong revenue and sales growth in Q1FY19, despite being a seasonally low first quarter. The growth stemmed from expansion in stainless steel flat product market, mainly driven by infrastructure spending, railway modernization, and auto segment, among others. At Rs 91 crore, profit after tax for Q1FY19 more than doubled over corresponding period last year (CPLY). A buoyant market for stainless steel led to higher sales volumes growth of 51% over CPLY.

Melt production grew by 45% in Q1FY19, as the company ramped up efforts towards debottlenecking and process balancing to optimise capacity utilization. Net revenue increased to Rs 3,147 crore, a growth of 56% over CPLY. EBIDTA for the quarter surged by 50% over CPLY, reaching Rs 375 crore. In CPLY, finance costs were extraordinarily lower on account of interest refund.

Commenting on the performance of the quarter, Managing Director, JSL, Abhyuday Jindal, said, “Our plant at Jajpur, Odisha, is one of the most modern stainless steel plants in the world with state-of-the-art facilities. The market outlook is conducive to propel volume growth. We have huge operating leverage and target to increase our capacity from 0.8 MTPA to 1.1 MTPA in near future through debottlenecking and process balancing with a minimum cash outlay. The Company has become eligible for exit from Corporate Debt Restructuring Scheme (CDR), basis the superior financial performance for the last two financial years. The consortium of lenders has already recommended CDR exit for Company and the matter is pending for voting in CDR forum.” Read more

Railways must switch to corrosion resistant stainless steel to shun any infrastructure collapse in future: ISSDA

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Collapse in the railways infrastructure is leading to significant disruptions and economic losses. The tragic pedestrian bridge collapse at the Andheri station, barely nine months after the railway bridge stampede causing 23 deaths at Elphinstone Road in Mumbai, could have been avoided by adopting stainless steel for creating such long term social infrastructure, especially foot-over bridges and overbrigdes. Indian Stainless Steel Development Association (ISSDA), country’s apex stainless steel body has reiterated importance of using stainless steel for social infrastructures like bridges, railway lines, etc. to drastically minimise loss of life and finances.

“Considering 50% of the Indian Railway bridges, out of 1, 20,000 across India, are over 100 years old, it is the need of the hour to deploy the best suited material – Stainless Steel, to reduce casualties up to a great extent. Moreover, stainless steel has twice the life cycle compared to carbon steel”, said, President- ISSDA, Mr KK Pahuja. Overall costing for the life cycle of stainless steel is significantly lower.  India has a large coast line and structures along the coastline cities are suffering due to corrosion, resulting not only in losses due to frequent maintenance and replacements but also disruption in daily public life. Stainless Steel in structural elements is critical in coastal areas like Mumbai which are prone to high corrosion. Today, stainless steel structurals such as angles, sections, nuts & bolts, anchors, reinforcement bars are easily available, suiting to applications requiring long life in corrosive environments. Read more

After a financial turnaround, Jindal Stainless Ltd gets a rating upgrade

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Jindal Stainless Ltd. (JSL), a leading stainless steel major, has received a rating upgrade from CARE, to ‘BBB-’ from BB+, reflecting Company’s improved profitability, strengthening balance sheet, and sustained operational progress. Commenting on the report, Managing Director of JSL, Mr Abhyuday Jindal said, “We are encouraged by the improvement in our rating. This development endorses that we are now more than financially and operationally stable, and poised to take our product mix and growth trajectory to the next level. The CARE ratings are a reflection of the inner health of the organization.”

Detailing the key drivers for JSL’s improved ratings, the report reads, ‘The Company has reported improvement in operational and financial performance during Q4FY18 with capacity utilization of 99.86% during Q4FY18 as against 90.95% in similar period previous year. The same has resulted in improved total operating income (TOI) and Profit Before Interest, Leasing, Depreciation and Tax (PBILDT), which increased to Rs. 3,183 crore and Rs. 399 crore respectively in Q4FY18, representing a growth of ~37% and ~22% respectively over similar period previous year. During full year FY18, the Company reported healthy growth in income and profitability with TOI of Rs. 10,803 crore and PBILDT of Rs. 1,299 crore, representing a growth of ~30% and ~18% respectively over FY 17. The Company reported healthy gross cash accruals of Rs. 787 crore during FY 18 which was significantly higher than Rs. 397 crore reported in FY 17.’ Read more

Jindal Stainless in talks with Gujarat government for use of stainless steel in transportation

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Image result for jindal stainless

Abhyuday Jindal, Managing Director, Jindal Stainless and Hon'ble Chief Minister of Gujarat Shri Vijay Rupani at the Surat Smart City Conclave at SIECC, Sarsana

Jindal Stainless has made presentation to the Gujarat government for use of stainless steel in public transportation system in order to increase fuel efficiency and improve safety. With its high strength-to-weight ratio and resistance to impact and temperature shocks, stainless steel is an ideal metal for modern transit network and states of Karnataka, Andhra Pradesh, Maharashtra, Goa and Haryana have adopted this smart metal in their State Road Transport Buses with the support of Jindal Stainless. Abhyuday Jindal, Managing Director, Jindal Stainless said during the Smart City Conclave held today at Surat International Exhibition and Convention Centre (SIECC), Sarsana. He further added, “I am also confident that Gujarat will be at the forefront in adopting sustainable solutions like stainless steel, considering its innovative and entrepreneurial approach. Jindal Stainless will be happy to support in this nation building exercise. We look forward to playing an instrumental role in providing India the perfect resource for building smart cities, and eventually, a Smart India.” Read more

Jindal Stainless Ltd FY18 revenue surge by 30%

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Jindal Stainless Limited (JSL) consolidated its financial position by successively posting a profit for the sixth straight quarter. JSL recorded a robust revenue growth of 30% in FY18. Increase in stainless steel demand and improved operational performance led to growth in total revenue in FY18 at Rs 10,785 cr as against Rs 8,311 cr in CPLY (corresponding period last year). The total consolidated FY 18 sales volume touched 778,933 MT, recording a growth of 21% as against 641,333 MT in CPLY. JSL reported a strong growth in PAT at Rs 318 cr in FY18 as against Rs 58 cr in CPLY, registering almost six times increase. EBIDTA was up by 16% at Rs 1,281 cr in FY18. The net worth of the company as on March 31, 2018 stood at Rs 2,352 cr. Improved operational efficiency in FY18 led to an increase in total stainless steel melt production which stood at 797,156 MT and was up by 10% as compared to CPLY.

 

Commenting on the outstanding performance of the company, Managing Director, JSL, Abhyuday Jindal, said, “The Company has delivered a strong result in FY18 for the second consecutive year. Our robust performance in FY 17-18 reinforces that JSL has set itself on a strong and sustainable growth journey. We will continue to enhance our offerings in the market with increased production of auto grade stainless steel and also meet the growing demand for railway coaches. Architecture, Building & Construction (ABC) and Automotive, Railway & Transport (ART) segment will also supplement stainless steel consumption.     Despite protectionist measures in some parts of the world, we will continue to maintain our stability in exports. With our industry leadership, our focus will expand to new application development and further improve our market outreach in FY19.” Read more