BENGALURU (Reuters) – India’s Jindal Stainless Ltd reported a near 13% drop in its fourth-quarter profit on Wednesday, as higher raw material costs and softer prices offset a surge in domestic demand.
The country’s biggest stainless steel maker posted consolidated net profit of 7.66 billion rupees ($93.67 million) for the quarter ended March 31, down from 7.36 billion rupees a year earlier. Revenue from operations was flat at 97.65 billion rupees.
Sequentially, the profit rose 53.8%, helped by growth in exports after the Indian government withdrew the export tax on certain steel intermediaries in November.
With revocation of the export duty, the company ramped up export sales and saw its highest-ever quarterly sales volume, Jindal Stainless said in a statement.
Imports from China and Indonesia continued to distort the level playing field against Indian manufacturers, the company added.
India’s steel exports slumped to a five-year low in the financial year that ended in March, impacted by the export tax and slowing global demand.
Meanwhile, Jindal Stainless’ input costs surged 13.8% to 72.47 billion rupees during the quarter. Prices of iron ore, the main component for making stainless steel, also rose.
($1 = 81.7800 Indian rupees)
(Reporting by Ashish Chandra and Nallur Sethuraman in Bengaluru; Editing by Rashmi Aich)
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