Jindal Worldwides stock jumps more than 22 per cent on the back of favourable announcement around textiles and robust financials

Stock of Jindal Worldwide Limited witnessed a 20% jump on Monday triggered by a slew of favourable announcement around textiles, increase in its export contribution and Company’s robust performance over last couple of quarters. The shares of Jindal Worlwide gained on Tuesday (2.80 percent) as well continuing its positive momentum of Monday.  The stock is up by more than 22 per cent in two trading sessions alone. 

The company’s export pie has increased to 25-30% in FY21 from almost zero three years back. Jindal Worldwide is the largest integrated manufacturer of denim fabric in India and second largest globally. It also manufactures and exports home textiles, which is one of the key export segment along with denim in India.

On the financial performance front, the company has been posting strong results despite the onset of several challenging factors. The company has shown improvement in margins along with growth on the topline front. The recent Q1FY22 results are as follows:

●       Consolidated Q1 Revenues at Rs 525.4 crs against Rs 56.3 Cr YoY

●       Consolidated Q1 EBITDA at Rs 43.9 Cr compared to Rs 3.8 Cr YoY

●       Consolidated Q1 PAT at Rs. 18.9 Cr against loss of Rs 14.9 Cr YoY

●       EBITDA margins at 8.4% vs 6.7% YoY

Jindal has shown strong revenue growth which has been driven by capacity additions and exports demand along with expanding distribution reach & penetration to Tier-2 & Tier-3 cities. It has an installed capacity of 140 MMPA as well as distinct presence across diverse product profile in the textile sector. The Ahmedabad-headquartered company manufactures denim fabric, bottom weight fabrics, premium shirting, yarn dyeing & home textile products.