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Stainless steel maker Jindal Stainless posted a 57% drop in its consolidated net profit at INR 48 crore for the April to June quarter on the back of lower sales and the incurrence of an exceptional loss. Consolidated net sales fell by 3% at INR 3,263 crore. The company also incurred an exceptional loss of INR 24 crore on account of FOREX movement. Mr Abhyuday Jindal MD of Jindal Stainless said that “Our performance in the first quarter indicates our strong financial position. The outlook for the business remains positive with the outlay of significant investments by the government in the union budget for Railways and infrastructure. However, we continue to face a challenge from high levels of imports, particularly from FTA countries like Indonesia and Vietnam. In the wake of these emerging business challenges, we have carried out an internal restructuring to sharpen our key focus areas. We have created a centralized team to serve as a knowledge bank, carve out new stainless steel applications through conversion from other materials, and develop new markets.”
The company said the stainless steel market is currently facing serious threats from subsidized imports coming from countries like Indonesia who’s imports constituted over 28% of total imports into India during the quarter.