Updated: Feb 20
*JSL and JSHL have the same concall.
This is our first Company Conference call(concall) Takeaway. In this series, we would be sharing important points from Concalls of particular companies and give and summary about them, So one doesn't have to go through complete concall.
Just by going through these takeaways, he can get a brief idea about the concall. And if there are any important questions an external link to the pdf would be linked with the page number and if it's in video format(youtube) then link to the video and the time would be mentioned. So to start with we have selected Jindal stainless Ltd. theirs not any particular reason or criteria for the selection of this company.
If you have any company suggestions which we can add to our Concall Takeaway Series Please Do Comment Down.
Key Points and Summary of JSL and JSHL Q2 Concall FY2022.
The merger of JSL and JSHL has awaited approval from NCLT: Approvals from SEBI and Ministry have been already received, NCLT approval is still pending. Management expects to complete the re-merger process by the end of this FY.
24-25,000Rs EBITDA/TON Guidance for FY22: From earlier guidance of 18-20,000Rs now the company has revised its guidance to 24-25,000 for full-year FY22.
Indian Stainless Steel Industry has been growing at 6.5-7%: In India and Globally SS has seen the highest ever growth in terms of Percentage for the last 5-6 years.
Contract Cycle with Railways and Autos are for 6 month period: As the prices of SS change every day there may be fluctuations in revenue and margins of JSL but the company usually has 3-6 months of contracts from majority of clients.
JSL Lifestyle has added new big clients(Tata's, Havells, Kent): Subsidiaries of JSL are doing very well. Profits from the subsidiary have almost doubled from last year and JSL lifestyle has added new prestigious clients to their list.
Alloys used by JSL are 100% locally sourced(Magnese, Chromium, Nickle): As there are now issues going on in China many sectors are facing raw material shortage but JSL doesn't have any alloys being imported from China.
65% of Raw Material is from India: Even though the company imports few of its raw materials from other countries JSL has maintained good inventory levels to run its business.
The new factor will take 100% ramp-up in 3-4Quaters: As and when the CAPEX of the JSL plant completes management expects to ramp up its production within 3-4Quaters.
50-55% Of Indian SS Market Share: JSL has more than 50%+ Market share in India another big chunk of M share is by Imports and other Indian players only have single-digit M share.
Auto Industry Contributes to 10% of JSL sales: Auto industry is currently going through some supply-side issues like Chip shortage, Magnesium shortage. So once this issues are solved Autos will pick up ad eventually JSL sales will also pick up and the Auto contribution in sales is expected to keep on growing future.
One can listen to Concall from 43:52 to 47:30
Link : JSL Concall Q2FY22
JSL: Jindal Stainless Steel Limited
JSHL: Jindal Stainless steel(Hisar) Limited
Concall: Conference Call
SS: Stainless Steel
Capex: Capital Expenditure
M Share: Market Share