Jindal Steel Ltd. (JINT.BO): Q1FY27 Results Review: New leadership team announced; Price support wanes; maintain Neutral rating

研报英文原文证据摘录

Jindal Steel Ltd. (JINT.BO): Q1FY27 Results Review: New leadership team announced; Price support wanes; maintain Neutral rating

Goldman Sachs Jindal Steel Ltd. (JINT.BO)

2019 to 2022 and has over four decades of industry experience.

2. Rajiv Kumar has joined as the Chief Operating Officer (COO). He has over 35 years of

experience, including roles as CEO of Vedanta’s aluminum business and various

leadership positions at Tata Steel.

3. Mr. Sandeep Modi has been appointed as the Chief Financial Officer (CFO). He brings

over two decades of experience, previously serving as the CFO of Hindustan Zinc

and spending over 20 years with the Vedanta Group.

n Management mentioned that China has announced a significant policy reset focused

on capacity swap reforms to enforce supply discipline; China’s capacity reduction is

around 50 to 60 million tonnes, whereas its domestic demand has contracted by

approximately 100 million tonnes. Management noted that this mismatch has

created a temporary surplus of steel in the international market.

n Management expects that once ongoing geopolitical conflicts are resolved, global

reconstruction and demand will stabilize.

n Per management, HRC prices increased sequentially and remained firm throughout

the first quarter of FY27.

n FY27 production expected at 10.5-11 mt. Management mentioned that the focus is

to increase the sales of value added steel, engineered steel and specialty grade.

Jindal Steel is the sole private supplier of head-hardened rails in India, supplying to

18 of the 22 active metro rail networks. Also, the company is producing specialty

plates for submarines, warships, and high-pressure storage vessels.

n Consolidated revenue declined by 8% sequentially due to lower sales volumes