India's Jindal Stainless cuts volumes outlook again, blames cheap Chinese steel (updated)

Jindal Stainless

29/01/2025 13:36

(Rewrites throughout with company comments from post-earnings
call)
    By Hritam Mukherjee and Manvi Pant
       Jan 29 (Reuters) - 
    India's Jindal Stainless  JIST.NS  on Wednesday cut its
volumes growth outlook for the ongoing fiscal year for the
second time and said it will review its capital spending plans,
as it grapples with the flood of cheap Chinese steel in domestic
markets. 
    The steelmaker now anticipates a 10% growth in volume for
the fiscal year ending March 2025, down from the 15% it had
projected in October.
        This is the second time the company reduced its volumes
growth forecast this fiscal, after a similar move in 2024.
  
    "Steel dumping from China and Vietnam kept prices and
margins under tremendous pressure," Managing Director Abhyuday
Jindal said in a post-earnings call. 
        The company "will take a relook" at its fresh capital
expenditure requirements for future expansion, Jindal said,
adding that a concrete decision will be taken in the ongoing
quarter.
  
    The company's third-quarter profit fell 5% year-on-year, as
a 10% jump in total expenses outpaced an 8.5% rise in net
revenue.
    Indian steelmakers have been battling an influx of
discounted Chinese steel, with shipments hitting an all-time
high during the April-December period, prompting them to seek
protection from the government with measures like temporary
taxes.
    Jindal Stainless' earnings before interest, taxes,
depreciation, and amortization (EBITDA) fell to 12.08 billion
rupees in the quarter, down 5.3% year-on-year. 
    Its exports fell 22%, which Jindal attributed to a slowdown
in U.S. and European markets. Domestic sales grew 20% in the
reported quarter. 
    
($1 = 86.5280 Indian rupees)

 (Reporting by Manvi Pant and Hritam Mukherjee in Bengaluru;
Editing by Mrigank Dhaniwala and Tasim Zahid)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))