Jindal Stainless Q3 results: Net profit down 5.4% to Rs 655 crore

However, the company managed to grow its sales volume from 5,12,015 tonnes in Q3 FY24 to 5,87,658 tonnes in Q3 FY25

Jindal Stainless on Thursday reported a 5.4 per cent year-on-year (Y-o-Y) drop in consolidated net profit in the October to December quarter (Q3FY25) amid persistent challenges in the export market. Net profit stood at Rs 654.84 crore in Q3FY25 compared to Rs 692.33 crore in the year-ago period. 

Revenue from operations on a consolidated basis was up 8.5 per cent Y-o-Y at Rs 9,907.30 than Rs 9,127.45 crore in the year-ago period. Sequentially, revenue increased 1.3 per cent and net profit rose 7.1 per cent. Abhyuday Jindal, managing director, Jindal Stainless, said the export market had not performed in line with expectation. However, it managed to grow sales volume from 5,12,015 tonnes in Q3FY24 to 5,87,658 tonnes in Q3FY25, a Y-o-Y gain of 15 per cent. This was on the back of domestic sales, which increased 20 per cent Y-o-Y in Q3FY25 while exports fell by 22 per cent.

 

The US and Europe markets had significantly slowed down, Jindal pointed out, even as requirements of long-standing customers were met. The company is also exporting to South America, South Korea and the Middle East, but there was no significant growth as China was also pushing material in these markets.

 

Jindal is bullish on the India story. But he added that the country being the fastest growing major economy globally, the domestic industry needs immediate government measures to stop dumping of surplus quantities into India, and circumvention of quality norms through several FTA countries.

 

Steel companies have been facing margin pressure on account of low-cost imports.

 

In view of market conditions, Jindal said that the company would be reviewing its future expansion plans. “We will definitely be revising or at least taking a relook at our capex plans.”

 

The company is pinning hopes on the upcoming Union Budget. Jindal is expecting the government to increase capital expenditure so that it helps all metal companies. “Or, there should be some support so that a level playing field comes in.”