Jindal Stainless Faces Profit Dip Amid Rising Input Costs

Jindal Stainless Ltd reported a 20% decline in consolidated net profit to Rs 609.42 crore for Q2 of FY25 due to rising input costs. Despite a stable domestic market growth, export levels varied across regions. Issues persist with imported subsidized stainless steel disrupting local markets.

Jindal Stainless Ltd (JSL) has disclosed a 20% decline in its consolidated net profit, which totaled Rs 609.42 crore for the second quarter that ended in September 2024, attributing the decrease to higher input costs. This marks a downturn from its net profit of Rs 764.03 crore in the same period last fiscal year, as cited in their exchange filing.

Despite the overall drop in net profit, the company's total income saw only a slight reduction, standing at Rs 9,823.88 crore compared to Rs 9,828.97 crore a year earlier. However, expenses climbed to Rs 8,989.83 crore, up from Rs 8,944.04 crore. The amount spent on materials consumed surged significantly from Rs 6,024.01 crore to Rs 6,759.95 crore.

In a separate update, JSL reported that their standalone sales volume rose to 5,64,627 metric tonnes in Q2 FY25. While the domestic sales proportion increased to 90%, export share dipped to 10%. Exports faced challenges with reduced demand and higher shipping costs in the EU, despite growth in regions like the US and South Korea. Imports of subsidized stainless steel continue to affect Indian producers' competitiveness, with significant inflows from China and Vietnam. Abhyuday Jindal, MD of Jindal Stainless, expressed hopes for policy interventions to curb the impact.

(With inputs from agencies.)