Rs 10,000 Cr Revenue Leader Makes a Strategic Bet with Hidden Expansion Plans – Acquires Two Firms Overnight!
Major Industry Shake-Up! A Leading Player Expands Its Footprint with Two New Acquisitions – What’s the Big Plan?
Jindal Stainless Ltd (JSL), India’s largest stainless steel manufacturer, has taken a strategic step to bolster its expansion plans. The company recently announced the acquisition of 100 per cent equity stakes in AGH Dreams Private Limited and Utkrisht Dream Ventures Private Limited for a total consideration of Rs 2 lakh. These acquisitions will be used to explore industrial project developments, marking a forward-looking move by the company.
Key Takeaways from the Acquisition
- Both companies are newly incorporated in February 2025 with no prior turnover.
- The acquisition is not a related-party transaction.
- JSL plans to utilize these entities for upcoming expansion projects.
- The transaction was completed on February 27, 2025.
Record-High Sales in Q3 FY ’25
JSL achieved its highest-ever quarterly sales in Q3 FY ‘25, reporting a 15% year-on-year growth. Domestic demand surged by 20%, supported by strong infrastructure projects and economic growth. Stainless steel consumption in India saw an 11% annual increase, reaching 4.46 million tons.
Operational & Financial Highlights
- Stand-alone revenue for Q3 FY ’25 rose to Rs 10,066 crore, up 3 per cent quarter-on-quarter.
- EBITDA remained stable at Rs 1,003 crore, while PAT increased by 5 per cent to Rs 619 crore.
- Domestic sales volume accounted for 90% of overall sales, showing a 14 per cent YoY increase.
- Export volumes dipped by 26 per cent due to geopolitical disruptions and weak demand from the EU.
Expansion & ESG Initiatives
- Chromeni operations have commenced, boosting cold rolling capacity.
- Indonesia’s SMS plant is expected to be operational by FY ‘27.
- Renewable energy now makes up 17 per cent of JSL’s power consumption, significantly cutting emissions.
- The company continues to develop value-added products, including those for defense and hydrogen economy applications.
Future Outlook
JSL maintains a volume growth guidance of around 10 per cent for FY ‘25, excluding contributions from Chromeni. Despite challenges in the export market, the company remains optimistic about domestic demand and regulatory developments, reinforcing its leadership in the stainless steel sector.
Disclaimer: The article is for informational purposes only and not investment advice.