Q4 profit: Jindal Stainless reports a 34.6% fall
Steel

Q4 profit: Jindal Stainless reports a 34.6% fall

On account of lower steel prices and weak international demand, India's Jindal Stainless reported a 34.6% fall in fourth-quarter profit.

The country's biggest stainless steel maker by volumes posted a consolidated net profit of $60 million for the quarter end. Despite robust demand for steel from the construction and automotive sectors of one of the world's fastest-growing economies, manufacturers have been grappling with the impact of declining steel prices.

At the conclusion of the quarter, the nation's largest producer of stainless steel by volume reported a combined net profit of $60 million. In one of the fastest-growing economies in the world, the construction and automotive industries have strong demand for steel, but manufacturers have been struggling with the impact of falling steel prices.

Construction and transport supplier Jindal reported a 3.2% decline in operating revenue to Rs 94.54 billion for the quarter. Important export markets, including the U.S. and Europe, remained poor, despite the fact that sales volumes for the quarter increased 12% year over year due to robust domestic demand.

During the quarter, the Red Sea situation caused a sharp rise in maritime freight and limited container availability, which in turn compressed profits. According to managing director Abhyuday Jindal, the crisis also caused the firm to lose certain clients because of delivery delays. This was stated in a news conference following the results.

The firm reported that while it has observed a resurgence in certain product categories in Europe, the U.S. market has not yet shown signs of recovery. Additionally, the business wants to increase its presence in the Middle East and South America.

The Indian government and the stainless steel manufacturer were also in discussions on the importation of Chinese stainless steel into India. For the fiscal year 2023?2024, the Jindal Stainless Board suggested paying a dividend of two rupees per share. Ahead of the announcement, the manufacturer of stainless steel's shares finished 4% down.

On account of lower steel prices and weak international demand, India's Jindal Stainless reported a 34.6% fall in fourth-quarter profit. The country's biggest stainless steel maker by volumes posted a consolidated net profit of $60 million for the quarter end. Despite robust demand for steel from the construction and automotive sectors of one of the world's fastest-growing economies, manufacturers have been grappling with the impact of declining steel prices. At the conclusion of the quarter, the nation's largest producer of stainless steel by volume reported a combined net profit of $60 million. In one of the fastest-growing economies in the world, the construction and automotive industries have strong demand for steel, but manufacturers have been struggling with the impact of falling steel prices. Construction and transport supplier Jindal reported a 3.2% decline in operating revenue to Rs 94.54 billion for the quarter. Important export markets, including the U.S. and Europe, remained poor, despite the fact that sales volumes for the quarter increased 12% year over year due to robust domestic demand. During the quarter, the Red Sea situation caused a sharp rise in maritime freight and limited container availability, which in turn compressed profits. According to managing director Abhyuday Jindal, the crisis also caused the firm to lose certain clients because of delivery delays. This was stated in a news conference following the results. The firm reported that while it has observed a resurgence in certain product categories in Europe, the U.S. market has not yet shown signs of recovery. Additionally, the business wants to increase its presence in the Middle East and South America. The Indian government and the stainless steel manufacturer were also in discussions on the importation of Chinese stainless steel into India. For the fiscal year 2023?2024, the Jindal Stainless Board suggested paying a dividend of two rupees per share. Ahead of the announcement, the manufacturer of stainless steel's shares finished 4% down.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code