Jindal Stainless Ltd (JSL) announced a 20% decrease in its consolidated net profit, totaling Rs 609.42 crore for the quarter ending September 30, 2024. This decline is primarily attributed to rising input costs. In the same quarter of the previous fiscal year, the company reported a net profit of Rs 764.03 crore, according to a filing with the stock exchange.
Jindal Stainless reported standalone sales volume of 5,64,627 metric tonnes (MT) for the second quarter of FY25, marking a 2.34% decline from the previous quarter due to a slower-than-expected demand recovery in export markets.
The domestic market, however, continued to show stable growth, with consistent demand from sectors like pipes and tubes, lifts and elevators, and railway coaches. The white goods segment performed better than usual ahead of the festive season, and continued growth is anticipated from both white goods and two-wheeler segments. With upcoming national projects focused on infrastructure, safe trains, coastal bridges, and water-related programs, demand for stainless steel is expected to remain stable throughout the fiscal year.
Despite the persistent issue of subsidized and dumped stainless steel imports, particularly from China and Vietnam, which surged by nearly 75% in the first half of FY25 compared to H1FY24, Jindal Stainless managed to grow its market share. The company leveraged competitive pricing and an enhanced delivery cycle to counter import pressures, particularly impacting the MSME sector.
On the export front, market recovery was slower than anticipated due to geopolitical factors. Although container freight rates have decreased from earlier highs, they still remain almost double their original levels. Export volumes in Q2FY25 remained in line with Q1 levels, with increased exports to the US, Middle East, and South Korea, while shipments to the EU declined due to reduced end-user demand and higher shipping costs.
Jindal Stainless Ltd is one of India’s largest manufacturers of stainless steel, known for its integrated operations that span the entire value chain from raw materials to finished products. Established in 1970, the company has grown into a global player in the stainless steel industry, supplying products to sectors such as automotive, construction, railways, and consumer goods.
With advanced manufacturing facilities in Hisar and Jajpur, Jindal Stainless produces a wide range of stainless steel products including flat and long products, catering to both domestic and international markets. The company is also focused on sustainability, investing in green energy and recycling initiatives as part of its commitment to reducing its environmental footprint.
