Jindal Stainless Q3 results: Net profit falls 5.3% to Rs 654 crore

Indian steelmaker Jindal Stainless reported a 5.3 per cent fall in third-quarter profit on Wednesday, hurt by lower prices amid discounted imports from China as well as rising expenses.

The company's consolidated profit after tax declined to Rs 654 crore (about $76 million) for the quarter ended Dec. 31 from Rs 691 crore a year earlier.

Indian steelmakers have been battling an influx of discounted Chinese steel, with shipments hitting an all-time high during the April-December period.

Jindal Stainless said the dip in profit happened as stainless steel prices have been declining globally, while incessant low-priced imports pressured margins in both domestic and export markets.

 

Its earnings before interest, taxes, depreciation, and amortization fell to Rs 1,208 crore in the quarter, down 5.3 per cent on-year.

Domestic sales grew 20 per cent in the quarter, driven by higher sales to the automobile industry, while exports fell 22 per cent.

The company's net revenue rose 8.5 per cent to Rs 9,907 crore, while total expenses jumped 10 per cent to Rs 9,102 crore.