Jindal Stainless Q2 results: Net profit down 21% at Rs 611.31 crore

Jindal Stainless on Thursday reported a 21.05 per cent year-on-year (Y-o-Y) decline in consolidated net profit in the July to September quarter (Q2 FY25) amid challenges in the export market. Net profit stood at Rs 611.31 crore in Q2 FY25 compared to Rs 774.33 crore in the year-ago period.

Revenue from operations on a consolidated basis was down marginally by 0.20 per cent at Rs 9,776.83 crore in Q2 FY25 compared to Rs 9,797.04 crore in the year-ago period. Sequentially, revenue was up 3.68 per cent, and net profit down 5.67 per cent.

The share of exports was 10 per cent of total sales in Q2 FY25 compared to 13 per cent in Q2 FY24. Overall, exports in H1 FY24 had stood at 15 per cent.

The challenge in exports was essentially on two counts: the growth momentum in the US and Europe continued to be under pressure, while the conflict in West Asia had increased logistics costs.

Abhyuday Jindal, managing director, Jindal Stainless, however, said during a post-results interaction that the company was exploring and expanding its presence in other geographies.

“South Korea, West Asia, South America, and Japan are the target markets,” he said. Jindal also added that Canada was expected to impose duty on Chinese steel. “If it happens, then we will be able to push more volumes in Canada.”

However, despite making inroads into newer geographies, the share of exports is expected to be at 10 per cent for the full financial year.

Jindal was bullish on the domestic market and expects volume growth to pick up going forward. “In terms of domestic demand, all new-age industries are picking up. Plus, we see good demand coming from the white goods sector; auto is seeing some recovery this Diwali compared to last year. There are multiple tailwinds available in the domestic market for good growth in stainless steel,” he said.

However, imports were an area of concern. The company pointed out that imports of subsidised and dumped stainless steel into India remained unabated throughout the quarter.

Without policy deterrents, and through misuse of the Free Trade Agreement (FTA) route, imports from China and Vietnam flowed freely into Indian markets, disrupting the level playing field for Indian producers, particularly the MSME sector, the company stated.