Jindal Stainless Limited (JSL) has reported its financial result for the year ended March 31, 2020. The Company recorded FY19-20 Profit After Tax (PAT) at Rs. 153 crore as compared to Rs. 139 crore over the corresponding period last year (CPLY), registering an increase of 10%. Company's EBITDA in FY19-20 was recorded at Rs. 1,175 crore, an uptick of 3% over CPLY. The revenue of the Company in FY19-20 remained almost flat at Rs. 12,320 crore. Sales volume in FY19-20 stood at 915,900 MT, rising by 7% over CPLY. On a yearly basis, the Company recorded the highest ever stainless steel production at 973,995 MT. During FY19-20, JSL obtained all requisite approvals from authorities and successfully exited the Corporate Debt Restructuring (CDR) framework.
Commenting on the FY19-20 performance, Managing Director, Jindal Stainless Limited, Abhyuday Jindal, said "JSL recorded steady operational performance in FY19-20. As GDP growth slowed down in the last quarter of the fiscal, we witnessed erosion in margins. Going forward, we are turning our focus on growing markets, such as the two-wheeler and healthcare industries. The domestic stainless steel industry, which has long required relief from imports from ASEAN and FTA countries, has both the capacity and the capability to cater to Indian demand. We are hopeful for affirmative government action under the Atmanirbhar package. Successful implementation of the Vocal for Local call by the government will go a long way in ensuring job generation and demand revival in the economy."
It's worth noting that stainless steel imports from Indonesia more than trebled from 75,187 MT in FY18-19 to 2,60,881 MT in FY19-20, severely impacting pricing in the Indian market, and exerting pressure on margins. To counter imports and diversify markets, the Company grew its exports to 188,679 MT during FY19-20, up by 21% over CPLY. To expand its presence in the domestic pipe and tube market and make genuine stainless steel products available to Indian consumers, the Company launched a co-branding scheme Jindal Saathi in the last fiscal, and will carry it forward in the current fiscal.
JSL's Q4FY20 witnessed a decline in growth on all accounts, largely due to muted economic sentiments given the COVID-19 outbreak. A steadily falling Nickel price during Q4 over Q3 negatively impacted inventory valuation, which further affected profitability. Sales volume also saw a decline of 2% over Q4FY19 and stood at 221,179 MT in Q4FY20.
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