Jindal Worldwide: Weaving Sustainability

Headquartered in Ahmedabad, Jindal Worldwide (JWL) is a major player in India's textile sector, with a strong focus on woven products for both domestic and international markets. As Asia’s largest fully integrated denim fabric manufacturer, JWL holds a prominent share in India’s denim market, with a vast network extending to 24 nations and servicing respected retail brands like Family Dollar, Shopko, Federated Stores, and Value City. JWL’s denim production capacity reaches approximately 140 million metres annually, underscoring its industry leadership.

Recognising the shifting industrial landscape, JWL recently diversified into electric vehicles with the launch of Jindal Mobilitric, establishing an advanced EV manufacturing plant in Ahmedabad with an annual capacity of 2.5 lakh two-wheelers. This venture marks JWL’s commitment to sustainable growth in a burgeoning sector poised for significant expansion.

Under the stewardship of Amit Agrawal, Vice Chairman and Managing Director, JWL continues to scale up. An MBA graduate from the University of Pittsburgh with prior marketing experience, Agrawal has been instrumental in shaping the company’s growth and strategy.

Steady Showing
In FY24, JWL faced market challenges that affected its financials, reporting an EBITDA of Rs 183.25 crore and PAT of Rs 75.65 crore, down from Rs 238.30 crore and Rs 115.71 crore in FY23, respectively. The company’s consolidated revenue also dipped to Rs 181.4 crore from Rs 207 crore in the previous year. This decline was attributed to recessionary trends in the US and European Union, which slowed fabric demand, coupled with an economic downturn in Latin America. These were some of the key factors impacting export volumes and profitability in FY24.

Despite these hurdles, JWL’s liquidity remains robust, with FY24 cash accruals of Rs 108.98 crore. Infomerics Ratings affirmed JWL’s strong cash flow outlook, projecting standalone cash accruals of Rs 126-142 crore over FY25-26, more than adequate to cover its long-term debt obligations of Rs 50.07 crore and Rs 37.65 crore due in FY25 and FY26, respectively. Infomerics Ratings is a SEBI registered and RBI accredited credit rating agency. "On a consolidated basis, JWL available free cash and bank balances stood at Rs 292 crore as on March 31, 2024," it added.