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 stable growth, especially in railway, elevator, pipes, tubes, and white goods segments.

• Revenue from operations for Q2 FY25 stood at ₹9,746 crore, flat year-over-year and up 2% sequentially; H1 FY25 revenue was ₹19,331 crore, down 2% from H1 FY24.

• EBITDA for Q2 FY25 was ₹1,007 crore, down 6% year-over-year and flat sequentially; H1 FY25 EBITDA declined 8% year-over-year to ₹2,011 crore.

• Commissioned Nickel Pig Iron Smelter in Indonesia eight months ahead of schedule; accredited by BrahMos Aerospace and supplied to ISRO and HAL.

• Received multiple ESG recognitions, including Energy Efficient Unit Award and Platinum Global Environment Award 2024.

Financial highlights

• Q2 FY25 sales volume: 565,000 MT, up 4% YoY, down 2% QoQ.

• Standalone Q2 revenue: INR 9,746 crore, up 2% QoQ; EBITDA steady at INR 1,007 crore.

• H1 sales volume up 5% YoY, with domestic sales up 10% YoY despite 28% drop in exports.

• Net debt reduced to INR 4,312 crore (down 11% from June 2024) despite INR 2,900 crore CapEx and investments.

• Consolidated Q2 FY25 revenue was ₹9,777 crore, flat year-over-year and up 4% sequentially; consolidated PAT was ₹609 crore, down 20% year-over-year and down 6% sequentially.

Outlook and guidance

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

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

• Year-end debt expected to be around INR 5,500 crore.

• Domestic market expected to grow 15%-20% with focus on margin-accretive segments.

• The company received shareholder approval to raise up to ₹5,000 crore through equity or eligible securities.