Jindal Stainless net profit falls 20% to Rs 609.42 crore in July-September

Jindal Stainless Ltd (JSL) on Thursday reported a 20 per cent fall in consolidated net profit at Rs 609.42 crore during the quarter ended September 2024 due to increased input costs. It had posted a net profit of Rs 764.03 crore in the July-September period of the preceding 2023-24 fiscal, the company said in an exchange filing.

The company's total income fell to Rs 9,823.88 crore in the quarter under review, from Rs 9,828.97 crore in the same quarter a year ago.

The expenses increased to Rs 8,989.83 crore in the July-September quarter, from Rs 8,944.04 crore in the second quarter of the last fiscal year.

The cost of materials consumed by the company surged to Rs 6,759.95 crore, from Rs 6,024.01 crore in the year-ago period.

In a separate statement, the company said its standalone sales volume in the second quarter of FY25 stood at 5,64,627 metric tonnes (MT), up from 5,43,618 metric tonnes.

The share of exports reduced to 10 per cent in September quarter from 13 per cent in the second quarter last fiscal. The domestic market sales improved to 90 per cent from 87 per cent a year ago.

Speaking to reporters, JSL MD Abhyuday Jindal said the domestic market continued to exhibit stable growth throughout the quarter. The demand remained steady from pipes and tubes, lifts and elevators, railway coaches and other segments.

The growth is expected to continue from white goods as well as two-wheeler segments till the tail end of the festive season.

"The Q2FY25 export volume of Jindal Stainless was consistent with its Q1 levels. While volumes increased in the US, Middle East and South Korea, exports to the EU declined due to slower end-user demand and higher shipping costs," he said.

The imports of subsidised and dumped stainless steel into India remained unabated throughout the quarter. Without policy deterrents, and through misuse of the FTA route, imports from China and Vietnam flowed freely into Indian markets, disrupting the level-playing field for Indian producers, particularly the MSME sector, Jindal said.

The import from Vietnam surged by nearly 75 per cent in H1FY25 compared to H1FY24.

"We also hope for a resolution to the ongoing dumping of subsidised and substandard imports from China and Vietnam, disturbing the level-playing field for Indian manufacturers," he added.