Jindal Stainless reported a fall of 61% in net profit at Rs 52 crore (including a one time gain of Rs 75 crore) for the quarter ending December 31, 2018 owing to rising input costs and soft demand during the quarter , the company announced on Wednesday.
While revenue from operations increased by 5% at Rs 3,135 crore, EBITDA suffered a decline of 41% at Rs 228 crore on a year on year basis, due to falling nickel prices leading to losses on account of inventory. Nickel prices were on the rise in the same period last year.
The company reported a one time gain of Rs 75 crore mainly from foreign exchange.
Even though growth in subsequent quarters looks "healthy", it does not mitigate the stress faced by domestic stainless steel industry on account of spiralling imports from Free Trade Assocation (FTA) nations, said Abhyuday Jindal, managing director of Jindal Stainless.
The company also saw exports fall to 19% of overall sales volume as against 28% last year due to "uncertainties around trade sanctions quota system developed by US and Europe respectively". Exports are "gradually" expected to pick up good forward.
Source: economictimes.indiatimes.com