India's Jindal Stainless Q2 profit doubles on strong domestic demand

Jindal Stainless

19/10/2023 13:32

BENGALURU, Oct 19 (Reuters) - India's Jindal Stainless
 JIST.NS  said on Thursday its second-quarter profit more than
doubled, helped by robust domestic demand.
    The company, India's biggest stainless steel maker by
volumes, said consolidated net profit for the quarter ended
Sept. 30 rose to 7.74 billion rupees ($93.02 million) from 3.47
billion rupees a year earlier. 
    Revenue grew nearly 12% to 97.97 billion rupees.
    Domestic sales were buoyed up by the government's push for
stainless steel in strategic sectors, Managing Director Abhyuday
Jindal said in a statement.
    The company also said sales in the auto segment had picked
up ahead of the festive season when customers make big ticket
purchases.
    Jindal, which makes stainless steel products for sectors
like transportation and construction, however, flagged concerns
of Chinese imports increasing nearly 55% year-on-year.
    "The unchecked inflow of subsidised and substandard foreign
imports continued to distort the level playing field against
Indian manufacturers, especially the micro, small & medium
enterprises sector," the company said.
    Last month, India imposed an anti-dumping duty on some
Chinese steel for five years after finished steel imports from
China touched a five-year high from April to July.
    Meanwhile, export volumes dipped from the previous quarter,
pressured by challenging macroeconomic conditions, subdued
global demand and pricing pressures, the company said.
    Additionally, it said it is exploring selling, liquidating
or divesting its unit in Indonesia, which is operating at a
utilisation of 15% due to unfavourable market conditions.
    Shares of Jindal Stainless closed 2.9% lower ahead of its
results. The company has jumped nearly 89% so far this year,
outperforming the metal index, which has risen 1.2%.
    
($1 = 83.2076 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Sonia
Cheema)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))