MUMBAI: Rating agency CRISIL on Thursday upgraded Jindal Stainless’s long-term bank facilities and loan program from ‘stable’ to ‘positive’ as its “outstanding performance” has led to improvement in business risk profile, expansion and strategic acquisitions. integrated its operations from ,
CRISIL Ratings has assigned JSL a ‘CRISIL AA-‘ rating, while the company’s short-term bank facilities rating has been kept unchanged at ‘CRISIL A1+’.
Crisil said that while upgrading the outlook for JSL, it has considered parameters including successful completion of merger process of JSL with Jindal Stainless Hisar Limited (JSHL), efficient working capital management and large scale export presence.
According to CRISIL, JSL’s leadership position in the domestic stainless steel industry, coupled with its agile business model, has helped it achieve a capacity expansion of 2.9 million tonnes per annum.
Additionally, JSL’s strong liquidity, coupled with its strategic acquisitions, has resulted in a sustainable improvement in EBITDA per tonne, according to a Crisil report.
Crisil said that despite the capacity addition, JSL’s financial risk profile is expected to remain healthy.
The rating agency expects JSL’s business risk profile to continue to improve, driven by focus on higher-margin areas, synergies arising from recent acquisitions and completion of its planned capex in FY2024.
The financial risk profile is also expected to remain healthy despite capex aided by JSL’s margin profile being stable, the report said.
The upgraded outlook by CRISIL Ratings is an important recognition of Jindal Stainless’s strong business fundamentals and commitment to mitigating environmental and social risks. Abhyuday Jindal, Managing Director, JSL said, “Our focus on creating a sustainable ecosystem, enhances our melting capacity to meet the growing stainless steel demand and improve our environmental, social and governance profile.”
JSL shares on Thursday 288.35 each on the National Stock Exchange.
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