- 16 May 2024
- ICICI Securities
JINDAL STAINLESS STEEL REPORTED MUTED PERFORMANCE IN Q4FY24
JSL - 650 Change: 10.40 (1.63 %)News: Total operating income on consolidated basis for Q4FY24 came in at ₹9,454 crore (down 3% YoY, up 4% QoQ) with stainless steel sales volume stood at 5.7 lakh tons, up by 12% YoY and 11% QoQ. EBITDA for the quarter came in at ₹ 1,035 crore with corresponding EBITDA margins at 10.9% (down 270 bps QoQ). EBITDA/tonne on standalone basis came in at ₹14,505/tonne in Q4FY24 vs. ₹19,938/tonne in Q3FY24 vs. ₹ 21,610/tonne in Q4FY23. Consolidated PAT for the quarter stood at ₹500 crore (down 30% YoY).
Views: Sales volume growth for the quarter came in healthy however, EBITDA/tonne fell below ₹15000/tonne mark vs. its consistent endeavour to clock ~₹20,000/tonne mark due to negative inventory valuation from the continuous decline in nickel prices as well as weak demand at it export markets especially Europe and US. Additionally, the company shared that Red Sea crisis has driven up freight costs, further compressing margins. Realisations for the quarter also declined to ₹ 1.67 lakh/tonne vs. ₹ 1.78 lakh/tonne in Q3FY24. We await management commentary on near term demand prospects as well as potential improvement in profitability going forward.
Impact: Negative