Jindal Stainless - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 92, MCap - Rs. 4461 crore)

Jindal Stainless' (JSL) Q4FY21 performance came in better than our estimate on all fronts. Strong recovery in domestic stainless steel demand aided Q4FY21 performance. Q4FY21 performance was buoyed by segments like auto and a healthy revival in demand from the pipe and tube segment, along with Railways and allied infrastructure, including the Metro segment.

Q4FY21 Earnings Summary

For the quarter, JSL's standalone operations reported sales volume of 255099 tonnes, up 15% YoY and higher than our expectation of 250000 tonnes. Standalone operations EBITDA/tonne came in at Rs. 20438/tonne, as compared to Rs. 17729/tonne in Q3FY21 and Rs. 10015/tonne in Q4FY20 (higher than our estimate of Rs. 18000/tonne)

Standalone operations reported topline of Rs. 3810 crore (up 31% YoY), while standalone EBITDA stood at Rs. 521 crore (up 116% YoY). The ensuing PAT of standalone operations stood at Rs. 265 crore

JSL's consolidated operations topline for Q4FY21 was at Rs. 3914 crore (up 26% YoY and 9% QoQ), higher than our estimate of Rs. 3606 crore. For Q4FY21, JSL reported consolidated EBITDA of Rs. 542 crore, up 145% YoY, higher than our estimate of Rs. 478 crore

Consolidated operations EBITDA margin stood at 13.9% (up 670 bps YoY and 70 bps QoQ), higher than our estimate of 13.3%. The ensuing consolidated PAT for Q4FY21 stood at Rs. 293 crore (higher than our estimate of Rs. 181 crore)

We would be coming out with a detailed report soon post the conference call.

Shares of JINDAL STAINLESS LTD. was last trading in BSE at Rs.91.95 as compared to the previous close of Rs. 95.85. The total number of shares traded during the day was 471388 in over 3006 trades.

The stock hit an intraday high of Rs. 100.1 and intraday low of 90.3. The net turnover during the day was Rs. 44719455.

Source : Equity Bulls

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