Jindal Steel and Power’s Integrated Annual Report for FY 2023-24 Highlights Strong Engagement with MSMEs, Contributing to National Economic Growth
NEW DELHI (India CSR): Jindal Steel and Power Limited (JSPL), a leading Indian conglomerate, has reaffirmed its commitment to strengthening India’s industrial and infrastructure sectors by sourcing 4% of its business through Micro, Small, and Medium Enterprises (MSMEs) during the financial year 2023-24.
As of March 31, 2024, JSPL’s outstanding dues to micro and small enterprises reached Rs. 152.34 crore, an increase from Rs. 125.49 crore in the previous year.
The company’s trade payables to non-MSME creditors amounted to Rs. 4,117.27 crore, bringing the total trade payables to Rs. 4,269.61 crore.
JSPL also reported that the principal amount due to MSMEs was Rs. 270.70 crore, with a nominal interest due of Rs. 0.06 crore.
Despite these financial commitments, JSPL has maintained its dedication to timely payments, ensuring there were no significant delays in settling dues with its suppliers.
The company’s Integrated Annual Report reveals significant strides in both financial and non-financial dimensions, demonstrating a robust engagement with small-scale suppliers that are vital to the nation’s economic fabric.
“In FY 2023-24, our Company reported a strong gross revenue of Rs. 58,115 crore and net revenue of J50,183 crore. Our adjusted EBITDA for the year is Rs. 10,231 crore, demonstrating a strong performance.”, Naveen Jindal, Chairman of JSPL said.
Financial Performance and Commitment to MSMEs
In the fiscal year 2023-24, JSPL reported a gross revenue of Rs. 58,115 crore and a net revenue of Rs. 50,183 crore.
The company’s adjusted EBITDA stood at Rs. 10,231 crore, showcasing a strong financial performance.
Under the leadership of Chairman Naveen Jindal, the company has strategically focused on strengthening its supply chain by sourcing a significant portion of its input materials directly from MSMEs.
This approach not only supports small businesses but also aligns with the government’s vision of promoting MSMEs as the backbone of the Indian economy.
The company sourced 4% of its input materials directly from MSMEs and small producers, maintaining consistency with the previous financial year.
Table 1: Financial Performance of JSPL in FY 2023-24
| Category | Amount (₹ in crores) | Remarks |
|---|---|---|
| Total Outstanding Dues to MSMEs | ₹152.34 crore | Reflects JSPL’s obligations to MSMEs |
| Total Trade Payables (MSMEs + Others) | ₹4,269.61 crore | Aggregate trade payables including MSMEs |
| Percentage of Input Materials Sourced from India | 67% | Increased from 57% in FY 2022-23, showcasing a focus on domestic suppliers |
Table 2: Business Sourcing from MSMEs
| Percentage of Business Sourced from MSMEs | 4% | 4% | Consistent sourcing from MSMEs |
| Total Outstanding Dues to MSMEs | ₹152.34 crore | ₹125.49 crore | Increased commitment to MSMEs |
| Principal Amount Due to MSMEs | ₹270.70 crore | ₹167.10 crore | Reflects the company’s engagement with small suppliers |
Strengthening Ties with Domestic Suppliers
JSPL’s commitment to domestic sourcing is evident, with 67% of its input materials sourced from within India, an increase from 57% in the previous year.
This move underscores the company’s dedication to reducing dependency on international suppliers and fostering local economic growth.
The strategic sourcing from MSMEs has allowed JSPL to contribute directly to the empowerment of small-scale industries, ensuring that the benefits of industrial growth are widely distributed across the economic spectrum.
Detailed Analysis of Trade Payables
As of March 31, 2024, JSPL’s total outstanding dues to micro and small enterprises amounted to Rs. 152.34 crore, up from Rs. 125.49 crore the previous year.
The company’s trade payables to creditors other than MSMEs stood at Rs. 4,117.27 crore, bringing the total outstanding trade payables to Rs. 4,269.61 crore.
The company reported that the principal amount due to MSMEs was Rs. 270.70 crore, with a minimal interest due of Rs. 0.06 crore.
Despite these financial obligations, JSPL has demonstrated a commitment to timely payments, with no significant delays in settling dues to its suppliers.
Table 3: Sourcing and Trade Payables
| Gross Revenue | ₹58,115 crore | Strong revenue generation |
| Net Revenue | ₹50,183 crore | After adjustments and deductions |
| Adjusted EBITDA | ₹10,231 crore | Demonstrates robust financial health |
Ongoing Efforts and Future Outlook
JSPL is in the process of further enhancing its systems for identifying and engaging with MSMEs through process control.
The management is confident that ongoing reconciliation efforts will not result in any material impact on the principal or interest amounts outstanding.
The company’s focus on MSMEs is part of a broader strategy to promote sustainable growth and inclusivity in its supply chain.
By sourcing materials from small producers, JSPL is not only contributing to the resilience of India’s industrial sector but also playing a crucial role in the economic upliftment of small and medium enterprises.
A Step Towards Inclusive Growth
Jindal Steel and Power’s efforts to source 4% of its business through MSMEs reflect its commitment to inclusive growth and national development.
As the company continues to build on its strong financial foundation, it remains dedicated to empowering small-scale industries, ensuring that they remain an integral part of India’s industrial future.
(India CSR)
