Jindal Worldwides stock gains 44.5 per cent in last one month

On the financial performance front, the company has been posting strong results despite the onset of several challenging factors

Stocks of Jindal Worldwide Limited have gained 44 per cent in last one month triggered by a slew of favourable announcement around textiles, increase in its export contribution and Company’s robust performance over last couple of quarters.  On BSE, the stock has moved to Rs. 92.25 on September 30, 2021 from Rs. 63.85  in end of August 2021.

The company’s export pie has increased to 25-30 per cent 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 crore against Rs 56.3 croreYoY

• Consolidated Q1 EBITDA at Rs 43.9 crore compared to Rs 3.8 crore YoY

• Consolidated Q1 PAT at Rs. 18.9 crore against loss of Rs 14.9 crore YoY

• EBITDA margins at 8.4 per cent vs 6.7 per cent 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.

Going forward, the Company feels that the momentum in export has to be maintained and strengthened to unlock the true potential of the Indian textile sector.