Jindal Stainless rises after ratings upgrade

2 Feb 2022 , 11:32 AM

As per the report released by India Ratings, the upgrade and RWE resolution factor in the improved visibility on the amalgamated business and financial profile of JSL and Jindal Stainless (Hisar) (JSHL), continued deleveraging across the group entities, improvement in terms of product mix, improved credit terms with suppliers, and healthy balance sheet liquidity.

Earlier this month, CRISIL Ratings had assigned CRISIL AA-/Stable rating to the long-term bank facilities of JSL.

Further, India Ratings believes that JSLs strong EBITDA/tonne is expected to remain higher than the historical average given the improved product mix, cost saving measures, and operating leverage accomplished by the Company.

India Ratings has also upgraded the rating assigned to JSHLs credit facilities to IND AA- with stable outlook.

Abhyuday Jindal, managing director, JSL, said, ?This rating upgrade underlines our agile business strategy. We continue to maintain focus on financial and operational discipline. Agility in our product mix to overcome market volatility has held us in good stead. With our brownfield capacity expansion on track, we expect to further strengthen our domestic and international footprint.?

JSL is one of the largest manufacturers of SS in India with steel melting capacity of 1.1 mtpa.

The companys consolidated net profit surged to Rs 407.47 crore in the quarter ended September 2021 as against Rs 81.73 crore during the previous quarter ended September 2020. Sales rose 51.68% YoY to Rs 5026.72 crore in Q2 FY22.

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