Jindal Stainless (JSL) Q2 24/25 earnings summary

Executive summary

• Maintained stable export volumes quarter-on-quarter despite global trade disruptions and weak demand in EU and US; domestic market showed steady growth, especially in railways, white goods, and infrastructure segments.

• Revenue from operations for Q2 FY25 stood at ₹9,746 crore, flat year-over-year and up 2% sequentially; consolidated revenue was ₹9,777 crore, with net profit at ₹609 crore.

• Commissioned Nickel Pig Iron Smelter in Indonesia eight months ahead of schedule, supporting backward integration and raw material security.

• Accredited by BrahMos Aerospace and supplied steel for ISRO and HAL, highlighting strategic partnerships and product quality.

• Major acquisitions in Indonesia and India expanded melting capacity to 4.2 MTPA, with Board approval for fund raising up to ₹5,000 crore.

Financial highlights

• Q2 FY25 sales volume: 565,000 MT, up 4% YoY, down 2% QoQ; H1 sales volume up 5% YoY, with domestic sales up 10% YoY, offsetting a 28% YoY drop in exports.

• Standalone Q2 revenue: INR 9,746 crore, up 2% QoQ; EBITDA steady at INR 1,007 crore, down 6% YoY; PAT for Q2 FY25 was ₹578 crore, down 3% YoY.

• Consolidated revenue for Q2 FY25 was ₹9,777 crore, flat YoY and up 4% sequentially; consolidated PAT was ₹609 crore, down 20% YoY.

• Net debt reduced to INR 4,312 crore as of September 2024, down 11% from June 2024; net debt as of September 2024 was ₹2,580 crore.

• Standalone finance cost increased 20% sequentially and 12% YoY in Q2 FY25; other income rose 37% sequentially and 143% YoY.

Outlook and guidance

• Volume growth guidance revised from 20% to 10%-15% due to weak exports; domestic growth remains robust.

• EBITDA per ton guidance maintained at around INR 18,000.

• No immediate plans for capital raise; focus remains on prudent capital management, though Board approved fund raising up to ₹5,000 crore.

• Expect ramp-up at Chromeni by end of the quarter, with fast utilization anticipated.

• Management confident about recovery of overseas subsidiary assets and monitoring regulatory changes on mineral rights taxation.