Jindal Stainless (Hisar)

Quick notes on Jindal Stainless concall:

• Rathi → by FY25 expect to have 70% utilization; this will have wire rods and rebars; expected run rate of 9-10k tonnes/month; 4-6k ebidta/tonne in FY25; 150crs of capex → some of it already incurred, in FY25 around 75crs of capex will happen
• Rabirun → in H1FY25 should be able to start the plant; current capacity of 4-5k tonnes/month, eventually want to make 8-10k tonnes/month in the pipe and tube segment; in the beginning i.e. H1FY25 will only have 1-1.5k tonnes/month volume; Approx 75crs of capex; 100% JSL material will be used (generally 50% 200 series, 50% 300 series)
• Iberjindal → in the future expect to have good demand when the European market rebounds; in FY22 did ebitda of 109crs, and PAT of 80crs; management is very bullish hence bought the stakes
• Jindal Coke → valuation hasn’t been decided, ebidta last quarter was 56crs, debt 450crs; net debt ~300crs
• Capex FY24 → earlier guidance was 3300crs which has been increased to 3600crs for two reasons
  – Rabirun → 100crs
  – NPI → tranche of $26million (225crs) being preponed to March
• Pipe and tube business in the next five year will grow at 10-12% cagr
• Series 400 → every quarter 2-3% contribution is increasing; currently 25% contribution
• Freight Cost → not passing on the increase in cost right now, if the problem persist will pass
• Guidance → 19-20k ebitda/tonnes; see good demand in the domestic market