The Business Bytes
TBB BUREAU
BHUBANESWAR, NOV 14, 2023
Stainless steel producer Jindal Stainless on Monday said Crisil Ratings has upgraded its rating to stable.
Crisil Ratings upgraded the company’s rating to stable from positive, the company said.
“Long-term bank facilities and debt programme of Jindal Stainless Ltd (JSL) were revised from Crisil AA-/Positive to Crisil AA/Stable,” JSL said in a filing to the BSE.
Commenting on this development, Jindal Stainless Managing Director Abhyuday Jindal said, “The upgraded rating underscores our commitment to holistic and consistent growth. Our strong product portfolio, wide market presence and flexibility of operations uniquely position us to cater to varied market segments at a competitive advantage. Over the years, we have made multiple efforts to create a conducive environment for stainless steel awareness and adoption. Whether it’s supplying material for Chandrayaan or for India’s first Regional Rapid Transit System, we are moved by the vision of building a stainless nation.”
As per CRISIL, the rating upgrade for Jindal Stainless acknowledges an improved business risk profile, forward integration through recent capacity expansions and acquisitions, and effective working capital management. Additionally, the positive outlook is supported by a robust demand scenario. In terms of Environmental, Social and Governance (ESG) goals, the company aims to achieve Net Zero by 2050 by switching to renewable sources of energy, focusing on waste management, energy optimisation, etc.
Jindal Stainless Group CFO and Executive Director Anurag Mantri said, “The enhanced rating for Jindal Stainless reflects our prudent capital allocation strategy for strong business management. Despite engaging in both organic and inorganic capital expenditure, our leverage ratios remain among the industry’s top range. We always prioritise effective working capital management and financial discipline to optimise value for all stakeholders.”
CRISIL Ratings considered various factors in the rating upgrade, including the company’s prominent position as a market leader in the domestic stainless steel industry, streamlined operations, significant export footprint, the successful merger of Jindal Stainless (Hisar) Limited with Jindal Stainless, JUSL acquisition and the acquisition of a 49% stake in a Nickel Pig Iron smelter facility in Indonesia among others.
