Jindal Stainless reported a 20% drop in its second-quarter profit, impacted by falling steel prices. For the quarter ending September 30, the company's consolidated profit after tax fell to 6.09 billion rupees (USD 72.4 million), compared to the same period last year.
Net revenue for the stainless steel producer was slightly down, reaching 97.77 billion rupees (USD 1.162 billion), compared to 97.97 billion rupees (USD 1.165 billion) in the previous year. The decline in revenue came as steel prices in India dropped to their lowest point in over three years by August, during which the country remained a net importer of steel.
Indian steelmakers have faced challenges due to higher imports, an issue the industry has been grappling with for several quarters. Steel Minister H.D. Kumaraswamy previously mentioned that discussions are ongoing to address this concern. Meanwhile, the costs of essential raw materials, such as iron ore and coking coal, saw a decline during the quarter, helping to partially alleviate the pressure from lower steel prices.
The combination of softer steel prices and rising imports has created a tough environment for India's steel producers, despite the reduction in raw material costs.
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