Jindal Steel’s consolidated profit after tax decreased by 21%, amounting to 13.38 billion rupees (approximately $160 million) for the April-June quarter. Raw material costs rose by 22%, contributing to an overall expense increase of 8%, totaling 117.93 billion rupees (around $1.41 billion), according to the company.
Despite the rising costs, Jindal Steel managed to partially mitigate the impact through its coal mines, which have helped counterbalance increasing iron ore prices over the past few quarters. The company's performance was also supported by strong steel demand, driven by the government's continuous investment in manufacturing and infrastructure projects ahead of the general elections.
However, during the April-June period, the general elections, which spanned nearly half the quarter, resulted in weaker steel demand, according to analysts. This situation was exacerbated by the rising costs of rebar, a crucial raw material for steelmakers. Last week, JSW Steel, one of India's leading steelmakers, also reported a larger-than-expected drop in profits.
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