Jindal Stainless Q3 profit plunges over 61% to Rs 52 cr on higher expenses

Jindal Stainless Wednesday said its standalone net profit plunged over 61 per cent to Rs 52.35 crore during December quarter 2018 on account of higher expenses.

The company had posted Rs 134.73 crore profit during the same period a year ago, Jindal Stainless Ltd (JSL) said in a BSE filing.

Total income during the quarter under review increased to Rs 3,140.59 crore from Rs 2,999.66 crore in October-December 2017.

JSL's total expenses rose to Rs 3,140.26 crore from Rs 2,833.80 crore in the corresponding quarter of the previous fiscal.

In a separate filing, JSL Managing Director Abhyuday Jindal said: "Despite falling nickel prices and soft demand, we were able to maintain our performance in this quarter. This can be ascribed to our diversified product range.

"Our plant in Jajpur is equipped to cater to growing and varied demand from eastern India, right from kitchenware sector to prestigious projects such as Train 18." 

With orders lined up from railways, automobile, consumer durables, and white good sectors, the growth in subsequent quarters looks healthy, he said.

However, Jindal said, this does not mitigate the stress faced by domestic stainless steel industry on account of spiralling imports from FTA nations.

Domestic steel industry is grappling with the issue of cheap steel imports, especially from countries with which India has free trade agreements (FTAs).