Q2 2024 Jindal Stainless Ltd Earnings Call Transcript
Key Points
- Jindal Stainless Ltd (BOM:532508) delivered satisfactory volumes in Q2 FY24 amid muted global demand, with a significant increase in domestic volume due to robust domestic demand.
- The company successfully commissioned the incremental capacity of its hot strip mill in Odisha, reaching a 3.2 million tonne capacity.
- CARE upgraded Jindal Stainless Ltd (BOM:532508)'s credit ratings to AA from AA-, reflecting consistent improvement in sales volume and better-than-expected EBITDA per tonne.
- The company has become a member of Responsible Steel, a global nonprofit multistakeholder standard and certification initiative, highlighting its commitment to sustainability.
- Jindal Stainless Ltd (BOM:532508) announced an interim dividend of 50%, or INR1 per equity share for FY24, marking the third dividend in the last six months.
- The company faces challenging macroeconomic conditions on the export front, with weakened global demand and pricing pressure affecting export volume on a quarter-on-quarter basis.
- Unchecked inflow of subsidized and substandard foreign imports, particularly from China, continues to distort the level playing field against Indian manufacturers.
- The Indonesian subsidiary, PTJSI, is facing unfavorable market conditions due to Chinese imports, leading to the decision to explore options for selling, liquidating, or divesting the equity stake.
- Despite efforts, the company has not seen immediate green shoots in the European export market, with expectations of improvement only from January onwards.
- The company’s EBITDA per tonne guidance remains impacted by subdued export markets and the pressure from Chinese imports, maintaining around INR20,000 per tonne.
Ladies and gentlemen, good day, and welcome to the Jindal stainless Q2 FY24 earnings conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Dixit from ICICI Securities. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of ICICI Securities, I welcome all the participants for Jindal stainless Limited Q2 FY24 conference call. At the outset, I would like to thank the management for giving us an opportunity to host this call.
From the management, we have with us today Mr. Abhyuday Jindal, Managing Director; Mr. Anurag Mantri, Executive Director and Group CFO, and Ms. Shreya Sharma, Head, Investor Relations. Without much ado, I would like to hand over the call to Ms. Shreya to take this forward. Over to you, Shreya.
Thank you, Amit. Good afternoon, everyone, and a warm welcome
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