Jindal Stainless sees steady growth in Q3FY25 despite market pressures
Jindal Stainless Limited (JSL) has released its financial results for the third quarter of fiscal year 2025, showcasing strong revenue growth despite significant pressures from rising stainless steel imports and declining global prices. The company’s standalone net revenue reached INR 10,066 crore, reflecting a 10.8% year-on-year (YoY) increase, while its profit after tax (PAT) declined 20.6% YoY to INR 619 crore due to margin compression.
Despite headwinds in the export market, Jindal Stainless increased its domestic sales by 20% YoY, reinforcing its leadership in India‘s stainless steel sector. However, challenges persisted, with subsidised imports crossing 2,62,190 tonnes, marking a 5% quarter-on-quarter (QoQ) increase and further intensifying pricing pressure in the domestic market.
How Did Jindal Stainless Perform in Q3FY25?
Jindal Stainless continued its growth trajectory in Q3FY25, supported by higher domestic demand and strategic market expansion. The company reported a 4.1% QoQ increase in sales volume, reaching 5,87,658 tonnes, as infrastructure and industrial demand remained strong.
On a consolidated basis, Jindal Stainless posted net revenue of INR 9,907 crore, reflecting an 8.5% YoY increase. While EBITDA rose 1.8% QoQ to INR 1,208 crore, it fell 3.1% YoY due to global pricing pressures and increased raw material costs. The company’s consolidated PAT stood at INR 654 crore, marking a 7.4% sequential increase but a 5.3% YoY decline.
The Board of Directors also approved an interim dividend of INR 1 per equity share (50% of face value INR 2) for FY25. The record date for eligibility is February 8, 2025, with the payout scheduled by February 27, 2025.
What Is Driving Jindal Stainless’ Domestic Growth?
Jindal Stainless continues to dominate the Indian market, supported by technological advancements, diversified product offerings, and a strong distribution network. The company has made significant inroads in the infrastructure, construction, and industrial segments, capitalising on the government’s push for infrastructure expansion.
In Q3FY25, Jindal Stainless reported a 20% YoY increase in domestic sales, reaching 5,37,747 tonnes, while export volumes dropped 22% YoY. The domestic market now accounts for 92% of total sales, compared to 88% in Q3FY24, highlighting a strategic pivot towards strengthening its domestic foothold.
The company’s tailored solutions for original equipment manufacturers (OEMs), particularly in the white goods and special finishes segments, have continued to boost sales. However, profitability remains under pressure due to relentless low-cost imports, which have impacted pricing power.
How Are Rising Imports Affecting Jindal Stainless?
The Indian stainless steel industry is facing increased competition from low-priced imports, particularly from countries benefiting from Free Trade Agreements (FTAs). In Q3FY25, imports rose 5% QoQ to 2,62,190 tonnes, further eroding domestic margins.
The depressed export market, coupled with declining global stainless steel prices, has led to downward pressure on profitability. Jindal Stainless is responding by focusing on niche global markets, particularly in automobile manufacturing, elevators, metro infrastructure, and white goods, where customised stainless steel solutions offer competitive advantages.
Despite these challenges, Jindal Stainless remains resilient, leveraging its technological edge, wide distribution network, and commitment to quality. However, the company continues to advocate for stronger trade policies to counter the impact of subsidised imports.
What Strategic Developments Are Driving Jindal Stainless’ Growth?
Jindal Stainless has taken significant steps to enhance its market positioning, innovation capabilities, and sustainability efforts. Key developments in Q3FY25 include:
Defence Sector Expansion
Jindal Defence and Aerospace, a strategic arm of Jindal Stainless, secured a repeat order from Hindustan Aeronautics Limited (HAL) for low-alloy steel sheets used in PSLV motor casings. Additionally, the company is developing precipitation-hardened stainless steel strips for anti-tank guided missile wings, reinforcing India’s self-reliance in advanced defence materials.
Research and Development Breakthroughs
The company has developed a new austenitic stainless steel grade (UNS S32615) with 5% silicon content, which offers superior corrosion resistance in sulfuric and nitric acid environments. This innovation is expected to support India’s chemical and industrial sectors while reducing reliance on imports.
Sustainability and ESG Commitment
Jindal Stainless continues to accelerate its sustainability initiatives, with the share of renewable energy in total power consumption rising from 1.17% in FY24 to 16.73% in Q3FY25. The company also published its first TNFD (Taskforce on Nature-Related Financial Disclosure) report, a pioneering effort in India’s iron and steel sector.
Additionally, Jindal Stainless launched an Environmental Observation Reporting System (ESORS) to enhance compliance and sustainability tracking. The company received strong ESG ratings in Q3FY25, including a score of 64.2/100 from ESGRisk.ai and 78/100 from CSRHub.
Industry Training Initiatives
Through its Stainless Academy programme, Jindal Stainless trained over 9,000 fabricators across India in FY25 to date. This initiative aims to enhance industry skills and expand the application of stainless steel across sectors.
What Does the Future Hold for Jindal Stainless?
Jindal Stainless remains optimistic about long-term demand, supported by India’s robust economic growth and increasing adoption of stainless steel in infrastructure and manufacturing. However, rising imports and global price volatility remain significant challenges.
Commenting on the company’s performance, Managing Director Abhyuday Jindal emphasised the urgent need for government intervention to curb unfair trade practices and subsidised imports. He highlighted the company’s commitment to innovation, sustainability, and self-reliance, ensuring continued competitiveness in both domestic and global markets.
With its strong market presence, focus on high-quality domestic production, and continued investment in research and sustainability, Jindal Stainless is well-positioned to navigate market challenges and sustain long-term growth.
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